KGI Chief Investment Officer Cusson Leung said that the market would mainly focus on the risks of stock and bond declines and the depreciation of the USD in 2H25. Currently, the broker maintains its "ACE" strategy recommendation, which suggests allocating in gold and other alternative assets (Alternatives), fixed income including government and investment-grade bonds (Credit Selection), and elite stocks (Elite Stocks). Its internal target for gold this year is USD3,700 per ounce.

Whether countries can reach tariff agreements, the trend of the USD exchange rate, and the risk of US deficits would influence global market conditions, Leung noted. It is currently expected that major countries are more likely to reach partial consensus on tariffs, extend grace periods, and gradually introduce industry-specific tariffs, while the USD will remain under depreciation pressure. With the risk of US deficits escalating and government bond yields continuing to range between 4% and 5%, the Fed may choose to cut rates 1-2 times.

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