Core Viewpoint - Geopolitical conflicts have shifted market focus towards supply security and strategic resources, changing the driving logic from risk aversion to concerns about re-inflation [1] Group 1: Market Impact - Rising oil prices are reinforcing inflation expectations, suppressing interest rate cut prospects, and impacting most asset classes [1] - The sustained increase in oil prices is leading to re-inflation trades and delaying Federal Reserve rate cut expectations, which will affect market risk appetite [1] Group 2: A-Share Market Dynamics - The A-share market is expected to remain volatile, with significant structural differentiation, benefiting resource sectors [1] - With the Producer Price Index (PPI) expected to rebound and turn positive, investor positioning may further balance, shifting towards value and inflation-sensitive sectors [1]

Core Viewpoint - Geopolitical conflicts have shifted market focus towards supply security and strategic resources, changing the driving logic from risk aversion to concerns about re-inflation [1] Group 1: Market Impact - Rising oil prices have strengthened inflation expectations, suppressing the outlook for interest rate cuts and impacting most asset classes [1] - The continued upward trend in oil prices is expected to influence market risk appetite, leading to a predominantly volatile A-share market with significant structural differentiation [1] Group 2: Sector Performance - Resource sectors are likely to benefit from the current market dynamics, as the PPI is expected to rebound and turn positive [1] - Investor positioning may further balance towards value-oriented and inflation-sensitive sectors in response to the changing economic indicators [1]