China Merchants Futures: The focus of the stock index will move further upward

Overall, the four major stock indices are moving quite similarly, with only differences in volatility; IC and IM are more volatile, while IH and IF are less volatile; in terms of style, benefiting from the prosperity of pro-cyclicality and high-end manufacturing, the mid-to-large cap growth style performs better. Looking ahead to the future market, we believe the center of gravity of the stock indices will move higher. In the short term, Trump’s visit to China has become the core window for market negotiations. The market’s expectation of achieving constructive results in China-U.S. economic and trade relations has significantly increased, which will further boost market risk appetite. At the industry level, technology and pro-cyclicality remain the main themes: US CSP earnings slightly exceeded expectations, the logic of the AI industry chain is becoming clearer, and capital expenditure chains are worry-free; pro-cyclicality sectors benefit from PPI rebound, with chemical and non-ferrous metals having phased opportunities. (CITIC Futures)