Group 1: Federal Reserve Rate Cut - The Federal Reserve announced a 25 basis point rate cut, lowering the federal funds rate target range to 4%-4.25%, marking the beginning of a global liquidity easing cycle [1] - The rate cut is characterized as a "risk management cut" by Chairman Powell, aimed at balancing labor market risks and persistent inflation pressures [2] - The dot plot indicates an increase in rate cut expectations for 2025 from 2 to 3 times, while only one cut is expected in 2026-2027, with the final rate projected at 3.125% [2] Group 2: Market Reactions and Opportunities - Hong Kong stocks are in a "shaking upward channel," with the Hang Seng Index rising 0.6% and the Hang Seng Tech Index increasing by 5.1% [4] - External capital is returning to Chinese assets, with structural opportunities in sectors like AI technology, consumer electronics, and innovative pharmaceuticals [4] - Historical data shows a significant calendar effect, with the Hang Seng Index averaging a 1.6% increase in the five trading days following the National Day holiday over the past decade [4] Group 3: U.S. Market Dynamics - Following the rate cut, U.S. stock indices reached new highs, driven by a tech surge, particularly with Nvidia investing $5 billion in a partnership with Intel [7] - The derivatives market experienced a "gamma squeeze," leading to a surge in trading volume for the S&P 500 [7] - Small-cap stocks are showing signs of recovery, with the Russell 2000 index lagging behind the broader market, benefiting from eased short-term debt pressures [7] Group 4: Asset Allocation Trends - Gold holdings are showing a divergence between institutions and retail investors, with SPDR Gold Trust increasing by 1.8% week-on-week, while retail investors reduced holdings through SPDR Minishares [10] - Global ETF flows indicate a structural preference for stocks, with a net inflow of $92.97 billion into stock ETFs, led by technology and financial sectors [10][12] - Emerging markets, particularly China, are attracting significant capital, with a net inflow of $1.08 billion into Chinese stock ETFs [10][12]