Understanding the Market | Cosco Ship Hold rises more than 5%, leading the shipping stocks. Central banks around the world cutting interest rates may boost international trade, while multiple disturbances affect the supply side of shipping

According to the Wise Finance app, shipping stocks continued to rebound recently. As of the time of publication, Cosco Ship Hold (01919) rose by 5.34% to HKD 11.06; Sinotrans (00598) rose by 4.88% to HKD 3.44; Voyah International (00316) rose by 2.31% to HKD 99.55; SITC International (01308) rose by 3.08% to HKD 19.44.

On the news front, on September 18th, the Federal Reserve announced a 50 basis point cut in the federal funds rate target range to a level between 4.75% and 5.00%, marking the first rate cut by the Fed in four years. Zhongtai Futures previously pointed out that central banks in many countries around the world have cut interest rates again, and the Fed may start a rate-cutting cycle in September. Expectations of macro liquidity replenishment may boost international trade.

Guotai Junan Securities pointed out that the current Israeli-Palestinian negotiations are deadlocked, and unexpected geopolitical events are expected to boost sentiment in the shipping market. Negotiations between the North American dockworkers' union and the American Maritime Alliance have progressed slowly, with Maersk issuing a warning of increased strike possibilities. In addition, ports in Australia, Canada, India, and other places are also facing strike risks. Strikes will disrupt the global supply chain, affecting the effective capacity of shipping, and it is recommended to pay attention to the constraints of geopolitical events and strike risks on the supply side of shipping