Broker: OCBC Investment Research
Date of Report: 10 September 2025

Global Markets Rally Amid Fed Rate Cut Hopes: In-Depth Analysis and Top Stock Picks

Market Overview: Record Highs on Wall Street as Rate Cut Hopes Intensify

Global equity markets surged to fresh highs, propelled by growing expectations of US Federal Reserve rate cuts following a significant downward revision to US payroll figures. This optimism has been reinforced by softer labor market data and dovish signals from Fed Chair Jerome Powell. Meanwhile, sectoral performances were mixed, with technology stocks leading the charge, and notable volatility in bond markets due to fiscal and political risks in Europe.

United States: Tech Giants Fuel Gains, Apple Dips Despite New iPhone

• US stocks climbed to all-time highs, buoyed by expectations of Fed rate cuts after the Bureau of Labor Statistics revised payroll data down by 911,000 jobs.
• Apple shares slipped 1.5% following the launch of the iPhone 17, the company’s thinnest model ever, alongside new Pro variants.
• Alphabet Inc. led market gains, supported by forecasts of a US\$58 billion revenue boost for its cloud operations by 2027.
• The Nasdaq Composite continued its rally, driven by AI enthusiasm and lower borrowing cost expectations.
• The Dow Jones Industrial Average advanced 0.43%, with UnitedHealth surging on robust Medicare insurance enrolment forecasts.

Europe: Political Risks and Fiscal Concerns Keep Yields Volatile

• The Stoxx Europe 600 Index rose a modest 0.06% amid muted investor sentiment.
• The CAC 40 gained 0.2% following a failed confidence vote for French Prime Minister Francois Bayrou.
• French government bonds saw increased spreads over German bunds, reflecting rising fiscal and political risks.
• Analysts urge caution on long-duration bonds due to the risk of further sharp sell-offs in the 10- and 30-year tenors.

Asia: New Highs in Taiwan and Korea, Disruption in Indonesia

• The MSCI Asia Pacific Index hit its highest since February 2021, up as much as 0.8%.
• Taiwan’s Taiex surged over 1% to a record peak, and Korea’s Kospi set a new year high.
• Indonesia lagged regional peers after the abrupt removal of the nation’s finance minister.

Singapore Market Recap: Mixed Performance

• Trading volume dropped 19.5% to 1,604.7 million, while turnover rose 5.5% to 1,379.8 million.
• Gainers numbered 279, while 296 stocks declined.

FX & Commodities Snapshot

Spotlight On: Zijin Mining Group — Positive Price and Volume Growth Outlook

Zijin Mining Group delivered robust 1H25 results, tracking closely with its earlier profit alert. The company’s performance was underpinned by strong copper and gold prices, alongside significant volume growth.

• Revenue and net profit surged on the back of higher sales volumes and firmer copper and gold prices.
• Unit costs increased 8% YoY for copper and 15% YoY for gold, but full-year cost increases are expected to remain within 5-8% YoY.
• Production of copper and gold is on track to meet full-year guidance.
• Lithium output lagged, reaching only 18% of the full-year target due to continued market weakness.
• Recent lithium price increases have improved profitability for selected projects, but Zijin maintains a conservative stance with a focus on cost controls.
• The planned spin-off of Zijin Gold International is seen as a potential positive catalyst.
• Target price raised to HKD39.50 (from HKD27.90) and CNY34.30 (from CNY27.84).

ESG and Risk Considerations

• State-owned entities like Zijin face increasing scrutiny on business conduct and ethical practices, with the company lagging global peers in some areas.
• Limited evidence of formal grievance channels and regular audits compared to industry leaders.
• Exposure to water stress has increased, though Zijin continues water recycling and risk monitoring efforts.
• Allegations of involvement in state-sponsored labor-transfer programs and production disruption risks due to potential labor unrest.

Rating: BUY

Latest Research Highlights: Key Stock Calls and Targets

Top STI Stocks by Market Capitalisation: Key Metrics and Recommendations

Conclusion: Strategic Positioning in a Volatile Yet Promising Market

The global equity landscape is buoyed by the prospect of monetary easing and robust sectoral performance in technology and select commodities. Investors are advised to remain vigilant amid ongoing volatility in bond markets, especially in Europe, and to pay close attention to company-specific growth drivers and ESG risks. Key stock calls reflect a bias toward market leaders and companies with resilient earnings profiles, while ongoing macro developments are set to shape near-term opportunities and risks.

Disclosures and Important Information

This report is intended solely for informational purposes and general circulation. Investors should conduct their own due diligence and seek professional advice tailored to their individual investment objectives and risk profiles before acting on any information presented herein.
The ratings, price targets, and recommendations are based on the latest available data and are subject to change as market and company fundamentals evolve.