The four major A-share indices all opened lower, gold concept stocks plummeted, and over 3,400 stocks in the market declined.

Ask AI · How Trump’s Iran speech triggered a surge in crude oil and a plunge in gold?

On April 2nd, the four major A-share indices all opened lower, with the Shanghai Composite down 0.2%, the Shenzhen Component down 0.35%, the ChiNext Index down 0.55%, and the STAR Market Index down 0.54%.

In the market, lithium batteries, photovoltaics, aluminum industry, advanced packaging, semiconductor equipment, energy metals, and gold concept stocks led the declines, while oil and gas, memory chip sectors gained strength. Over 3,400 stocks declined.

Specifically, the oil and gas exploration sector opened higher again, with Beiken Energy up nearly 6%, Tongyuan Petroleum and Zhongman Petroleum up nearly 3%.

The precious metals sector opened collectively lower, with Xiaocheng Technology down nearly 4%, and Western Gold and Hunan Silver both down over 1%.

On the news front, after Trump delivered a speech on Iran war, WTI crude oil broke through $103 per barrel, rising 4.07% intraday. Brent crude oil surged $4 intraday, currently at $102.86 per barrel, up 4.06%. Gold prices plunged, with spot gold falling over 1%, at $4,687.87 per ounce.

Everbright Securities stated that although the impact of geopolitical factors on the market has temporarily eased, uncertainties remain, especially as trading volume has not yet increased, which will limit the space for subsequent rebounds. The short-term market remains volatile, and attention should continue to focus on the developments in the US-Iran game.

Guotai Haitong believes that in the next stage, the equity market may continue to exhibit a structural trend amid volatility, as three major variables—ongoing geopolitical conflicts, rising inflation expectations, and accelerated industrial transformation—intertwine to create investment opportunities. First, technology-focused investment opportunities remain promising, with a focus on AI hardware and infrastructure such as computing power, storage, liquid cooling, and CPO, emphasizing critical links and technological iteration directions. Second, resource commodities are gaining value, as overseas turmoil increases supply uncertainties, coupled with domestic PPI rebound expectations, with gold, copper, aluminum, and chemical segments benefiting from rising oil prices still having upward potential due to supply constraints and financial attributes. Additionally, marginal attention can be paid to opportunities in consumer and service sectors’ early-stage layout, as traditional industries’ supply side improves and valuations have safety margins. Caution is advised regarding potential overshoot in Middle East conflicts, stagnation in Fed rate cuts, and fluctuations caused by first-quarter earnings divergence.

(This article is from First Financial)