Core Viewpoint - Schroders' investment team indicates that the Federal Reserve's policy stance is more dovish than previously expected, leading to a decline in real yields, which, combined with strong corporate earnings and loose fiscal policy, has resulted in a positive outlook for global equities, particularly favoring U.S. and emerging market stocks [1] Group 1: Market Analysis - The investment firm previously held a neutral stance on equities, but recent negative U.S. non-farm payroll data has led to a re-pricing of interest rate cut expectations by the market [1] - U.S. Treasury yields have risen, pushing valuations into a more expensive range [1] Group 2: Asset Preferences - Schroders continues to favor gold due to its benefits from lower real yields and its protective qualities against debt sustainability and concerns over Federal Reserve independence [1] - The firm has downgraded its view on local currency debt in emerging markets after strong performance, while maintaining a bearish outlook on the U.S. dollar [1] Group 3: Regional Focus - The outlook for Chinese and emerging Asian equities has been upgraded, supported by improving economic activity indicators in China and signs of export recovery in South Korea and Taiwan, providing a strong basis for broader allocation in technology export-related sectors [1]

Group 1 - The core viewpoint is that the coal market is experiencing a price rebound due to seasonal demand and supply constraints, with expectations of a shift in the supply-demand balance in the fourth quarter [2][4] - Both thermal coal and coking coal prices have strengthened since June, driven by a decrease in inventory at northern ports and increased replenishment demand [2] - On the supply side, strict safety and environmental regulations have limited coal production, with expectations of marginal increases in national raw coal output being unlikely in the fourth quarter [2] Group 2 - The demand side is bolstered by the upcoming winter heating season, leading to increased replenishment efforts from large power plants and downstream users, resulting in significant declines in port and on-site inventories [2] - The coal sector is characterized by strong defensive and high elastic properties, making it suitable for investment, especially with the potential for both performance and valuation recovery in the fourth quarter [4] - The coal sector benefits from a favorable valuation, strong dividend yield, and a supportive macroeconomic environment, including relaxed fiscal policies and state-owned enterprise market management strategies [4]

Group 1: Japanese Stock Market Surge - The Nikkei 225 index has surpassed the 47,000-point mark for the first time, rising nearly 2,000 points with an increase of over 4% [3][6] - The index closed at 47,682 points, marking a significant milestone in Japanese stock market history [3] - Major stocks such as Sumitomo Pharma, Yamaha Motor, Nissan, and Panasonic have seen substantial gains, indicating strong bullish sentiment in the market [4] Group 2: Political Influence on Market - The surge in the Japanese stock market is linked to the recent political event where Sanae Takaichi won the ruling Liberal Democratic Party leadership election, expected to become Japan's first female Prime Minister [6] - Takaichi's support for expansionary fiscal policies and "Abenomics" is viewed positively by the market, as she advocates for cash subsidies and tax rebates to assist families affected by inflation [6] Group 3: Currency and Bond Market Reactions - In contrast to the stock market, the Japanese yen has depreciated significantly, with the USD/JPY exchange rate rising by 1.5% to 149.7, nearing the psychological level of 150 [8] - The yield on Japan's 40-year government bonds increased by 14 basis points to 3.52%, while the 10-year bond yield slightly rose by 0.5 basis points to 1.65% [8] Group 4: Gold Market Dynamics - Concurrently, gold prices have surged, reaching a record high of $3,920.77 per ounce, driven by various factors including the Federal Reserve's interest rate cuts and geopolitical tensions [10][12] - The increase in gold prices is also attributed to significant inflows into gold ETFs, with net inflows reaching $13.6 billion over the past four weeks, and over $60 billion year-to-date, marking a historical high [12] Group 5: Future Market Outlook - Analysts suggest that the market reaction to Takaichi's victory may be more tempered and short-lived than expected, with a decreased likelihood of the Bank of Japan raising interest rates again this year [14] - The market anticipates a nearly 95% probability of the Federal Reserve cutting rates in October, with a 99% chance of further cuts by December [14][16]

Core Viewpoint - The Tokyo stock market experienced significant gains on October 6, driven by expectations that the newly elected president of the Liberal Democratic Party, Sanae Takaichi, may implement more accommodative fiscal policies upon becoming Prime Minister [1][2]. Market Performance - The Nikkei 225 index closed up by 4.75%, reaching 47,944.76 points, while the Tokyo Stock Exchange Price Index rose by 3.10%, closing at 3,226.06 points [2]. - The market saw a strong opening, with the Nikkei index briefly surpassing the 48,000-point mark during the day [1]. Sector Performance - Most of the 33 industry sectors on the Tokyo Stock Exchange recorded gains, particularly in electrical products, machinery, and real estate, while only the banking and airline sectors experienced declines [2].

Group 1 - The core viewpoint is that two main sources of capital will influence the Chinese mainland stock market's impact on the real economy: the recovery of IPOs and the actions of retail investors [1][2] - The recovery of IPOs is expected to strengthen the financing cycle and enhance the financial market's support for the real economy [1] - Retail investor participation is gradually increasing, driven by more household savings flowing into the stock market, which could create a wealth effect and boost household disposable income and consumption confidence [1] Group 2 - The macroeconomic policy shift in China since September last year is crucial, with the central bank implementing measures to boost market confidence, including new monetary policy tools [2] - Funds flowing into A-shares in the first half of the year were primarily from institutional investors, contrasting with the retail-driven market surge in 2015 [2] - Economic analysts have raised the growth forecast for China's economy in 2025 to near the government's target of 5%, indicating resilience under tariff pressures [2]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The steel market is driven by market sentiment, with prices fluctuating upward. Overall, steel itself may lack price drivers and will maintain a volatile and slightly strong trend in the short term, following raw materials. If over - production verification is implemented, it may raise the price center of steel, while the disk profit will continue to shrink [1][7] - The trading strategy suggests maintaining a wait - and - see attitude for single - side trading, opportunistically intervening in positive spreads when the basis is low for arbitrage, and waiting and seeing for options [9] Summary by Directory Chapter 1: Steel Market Summary and Outlook Summary - **Supply**: This week, the small - sample production of rebar was 211,960 tons (+2,900), and that of hot - rolled coil was 317,490 tons (-3,650). The daily average pig iron output of 247 blast furnaces was 242,230 tons (-210). The capacity utilization rate of 49 independent electric arc furnace steel mills was 30.2% (+1.6). Short - process steel production resumed due to full profit in off - peak electricity, and long - process steel profit increased to over 100, with pig iron production remaining high. The daily consumption of scrap steel increased to over 510,000 tons [4] - **Demand**: The small - sample apparent demand for rebar was 216,580 tons (+10,410), and that for hot - rolled coil was 315,240 tons (-8,550). The apparent demand for building materials rebounded significantly, while that for hot - rolled coil declined seasonally. The growth rate of fixed - asset investment in China from January to June decreased month - on - month, and the real estate market was still weak. The manufacturing PMI expanded, and the automobile industry maintained positive growth in production and exports, but the profit was shrinking. The home appliance industry entered the off - season, and the export situation might continue to decline [4] - **Inventory**: Rebar inventory decreased by 46,200 tons in total, hot - rolled coil inventory increased by 22,500 tons in total, and the total inventory of five major steel products decreased by 11,600 tons [4] - **Outlook**: The steel production reduction slowed down, rebar inventory decreased while hot - rolled coil inventory increased. The apparent demand for building materials rebounded, and market sentiment improved. The steel market will maintain a volatile and slightly strong trend in the short term, and attention should be paid to overseas tariffs and domestic macro - policies [7] Chapter 2: Price and Profit Review Summary - **Spot Prices**: On Friday, the rebar summary price in Shanghai was 3,410 yuan (+160), and in Beijing was 3,340 yuan (+150). The hot - rolled coil price in Shanghai was 3,470 yuan (+130), and in Tianjin was 3,410 yuan (+200) [13] - **Profit**: The long - process steel profit increased to over 100. The flat - rate electricity profit of the East China electric furnace was - 23.75 yuan (+133), and the off - peak electricity profit was +141 yuan (+133) [4][29] Chapter 3: Important Domestic and Overseas Macroeconomic Data Summary - **Domestic Macroeconomy**: The Yarlung Zangbo River downstream hydropower project started, with a total investment of about 1.2 trillion yuan. The National Energy Administration will conduct a coal production verification. The National Development and Reform Commission and the State Administration for Market Regulation solicited opinions on the revised draft of the Price Law. In June, the new social financing was 4.2 trillion yuan, and the growth rate of M1 - M2 improved. From January to June 2025, the cumulative year - on - year growth rate of China's fixed - asset investment was +2.8%, with a continued decline in growth rate [35][45] - **Overseas Macroeconomy**: In the US, the initial jobless claims decreased, and the manufacturing PMI remained stable. In the Eurozone, the manufacturing PMI showed signs of stabilization [4] Chapter 4: Steel Supply, Demand, and Inventory Situation Summary - **Supply**: The daily average pig iron output of 247 blast furnaces was 242,230 tons (-210), and the capacity utilization rate of 49 independent electric arc furnace steel mills was 30.2% (+1.6). The small - sample production of rebar was 211,960 tons (+2,900), and that of hot - rolled coil was 317,490 tons (-3,650) [65][69] - **Demand**: The small - sample apparent demand for rebar was 216,580 tons (+10,410), and that for hot - rolled coil was 315,240 tons (-8,550). The construction material demand showed a certain recovery, and the cement usage also reflected the demand situation. The export of steel was still high, but the demand in the manufacturing off - season was under pressure [72][83] - **Inventory**: Rebar inventory decreased by 46,200 tons in total, and hot - rolled coil inventory increased by 22,500 tons in total [4]

Core Viewpoint - The results of the Japanese Senate elections have increased uncertainty regarding the future of the Japanese yen, as political dynamics may shift in response to economic pressures [1] Group 1: Election Impact - The Japanese Prime Minister, Shigeru Ishiba, has pledged to remain in office and continue negotiations on the US-Japan trade agreement, but opposition parties may advocate for expansionary fiscal policies to address public welfare concerns [1] - These expectations have already put pressure on Japanese government bonds prior to the elections, negatively impacting the yen [1] Group 2: Political Risks - There is a risk that Shigeru Ishiba could be replaced by more conservative factions, which may call for the Bank of Japan to slow down interest rate hikes [1] - The current upward trend of the yen lacks clear support, indicating potential volatility in the currency's performance [1]

Core Viewpoint - The Canadian GDP growth is expected to slow significantly, but a recession can be avoided, according to Stephen Brown from Capital Economics [1] Group 1: Election Outcome - The Liberal Party, led by Mark Carney, won the Canadian election but lost its majority [1] - The election results are not expected to change the GDP growth outlook [1] Group 2: Economic Policy Implications - The Liberal Party is likely to continue governing and implement moderate stimulus policies [1] - Carney may need to make concessions to the New Democratic Party or the Bloc Québécois to implement his plans, potentially leading to looser fiscal policies [1] Group 3: Interest Rate Expectations - The anticipated fiscal policies may lead to a reassessment of the expectation that the Bank of Canada will cut interest rates three more times this year [1] - This could prevent the Canadian dollar and bond yields from declining as significantly as previously expected [1]