CITIC Securities: A commodity bull market is worth looking forward to this year

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ME News Report, May 20 (UTC+8), CITIC Securities research report states that as the ongoing conflict between the US, Israel, and Iran continues to evolve, there is still no clear timetable for the reopening of the Strait of Hormuz, leading to crude oil prices remaining high. If inflation rises further in the future, it may become more difficult for the Federal Reserve to cut interest rates, impacting the bull market in commodities. However, our analysis of the new Federal Reserve chair's statements suggests that the Fed's response to high inflation may be less responsive, and the policy combination could be "cut rates first, then shrink the balance sheet." This year, the commodity market may welcome a favorable environment of inflation plus easing. Coupled with the generally supply-demand imbalances faced by most commodities, we believe a commodity bull market is worth looking forward to this year. (Source: Jin10)
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