In the past week, the previously rapid rising cyclical sector has entered a pullback.
Data shows that the steel sector has fallen by 3.57% over the past 5 trading days, the largest decline among the 28 Shenwan first-level industry sectors. In the past 60 trading days, the steel sector has risen by a cumulative 9.78%, ranking first among the 28 industry sectors.
The mining sector has fallen by 1.78% in the past 5 trading days, with declines second only to the steel sector.
Industry insiders believe that commodity prices are subject to policy regulation, and cyclical stocks are experiencing a simultaneous "cooling off". However, as the economic recovery accelerates, strong demand will drive profits along the industry chain upstream, and the profitability of related listed companies can still be expected, with the investment value of cyclical stocks still existing.
Cyclical sectors saw a downturn, bidding farewell to the era of "all things rising together" in the commodity market.
Synchronous with the drop in cyclical stocks, the domestic commodity market has also experienced a significant decline. In the past week, commodity futures that had previously surged have all seen sharp declines.
This round of joint decline in futures is related to the latest policy trends both domestically and internationally.
Domestically, regulatory authorities have repeatedly signaled their firm determination to curb the rapid rise in commodity prices. Internationally, the United States has a relatively high level of inflation, leading to increasing market expectations of tightening monetary policy. The Federal Reserve has also made corresponding implications.
The recent two executive meetings of the State Council have mentioned issues related to the rise in commodity prices.
The executive meeting of the State Council held on May 19th pointed out the need to pay close attention to the adverse effects brought by the rise in commodity prices...