Core Viewpoint - The expectation of a Federal Reserve interest rate cut has diminished, leading to pressure on global risk assets through two main channels [1] Group 1: Impact on Currency and Commodities - A decline in interest rate cut expectations supports the US dollar index in the short term, which, as a core global pricing currency, makes dollar-denominated commodities and emerging market assets less attractive, potentially causing capital to flow back to dollar assets [1] - The continued restrictive monetary policy will elevate real interest rates, negatively impacting the valuation logic of risk assets, particularly high-valuation growth assets, as rising discount rates compress their valuation space [1] Group 2: Market Performance - Recent market performance indicates a pullback in the US Nasdaq index, emerging market equities, and cyclical commodities like oil, reflecting the pressure on risk assets [1]

Core Viewpoint - Singapore's Oversea-Chinese Banking Corporation (OCBC) indicates that while global risk assets may continue to experience volatility in the short term, opportunities still exist [1] Group 1: Market Conditions - Concerns regarding growth and inflation, along with the unpredictability of Trump's policies, may create market tension [1] - The investment strategy emphasizes an increased allocation to equities, with China identified as a preferred market [1] Group 2: Investment Opportunities - Selective opportunities are present in the U.S. stock market and other Asian markets [1] - Singapore is highlighted as an attractive investment destination due to its low valuations and appealing dividend yields [1]