Market Performance - Global markets mostly declined last week, with MSCI Global down by 0.2%, MSCI Developed Markets down by 0.2%, and MSCI Emerging Markets down by 0.6% [1] - The US 10Y Treasury yield saw a significant increase, while silver prices surged and gold prices increased at a slower rate [1] - The dollar strengthened against the pound, yen, and renminbi, with defensive sectors like energy materials and utilities performing well [1] Trading Sentiment - Overall trading volume weakened globally, with a rebound in short-selling ratio in Hong Kong stocks [1] - Major indices such as Hang Seng, Nikkei 225, S&P 500, Euro Stoxx 50, and Kospi 200 experienced a decline in trading volume [1] - Investor sentiment in Hong Kong and US markets decreased but remained at historically high levels, while volatility decreased in Hong Kong and US markets but increased in European and Japanese markets [1] Earnings Expectations - Global stock market earnings expectations were generally revised downwards, with some markets seeing upward revisions in energy materials [2] - The Hang Seng Index's 2025 EPS forecast was revised down from 2068 to 2063, while the S&P 500's EPS forecast was adjusted from 269 to 268 [2] - The Eurozone STOXX50's EPS forecast was also revised down from 337 to 333 [2] Economic Expectations - US economic expectations improved last week, with the Citigroup Economic Surprise Index rising due to fluctuating Fed policy expectations and better-than-expected tech earnings [2] - Conversely, the European Economic Surprise Index declined, likely due to rising geopolitical risks and weak manufacturing data [2] - China's Economic Surprise Index also fell, impacted by uncertain real estate policy effects and fluctuating external demand data [2] Capital Flows - The divergence in Fed policy signals intensified market speculation, with futures markets indicating an expected 1.8 rate cuts by the Fed this year [3] - Global liquidity trends shifted towards easing, with significant capital inflows into India, Europe, Hong Kong, and South Korea [3] - Hong Kong's stock connect and stable foreign capital inflows into the Hong Kong market were noted [3]