Copper sector stocks fell to the forefront of market declines in Hong Kong. As of the time of writing, Luoyang Molybdenum (03993) dropped 4.09% to HKD 15.02, Jiangxi Copper Co Ltd (00358) slid 3.04% to HKD 33.14, China Gold International (02099) declined 2.99% to HKD 221, and MMG Ltd (01208) fell 2.82% to HKD 8.615.

On the news front, the 10-year US Treasury yield climbed to as high as 5.07% on Wednesday, reaching its highest level since 2007. Multiple Federal Reserve officials signaled that if inflation fails to cool down quickly, the central bank could further tighten monetary policy. Bank of America recently issued a warning, suggesting investors should begin preparing for the risk of the Fed raising the benchmark interest rate above 5%. The interest rate market still underestimates the potential peak level of the Fed's rate hike cycle.

According to a research report from Cinda Futures, copper concentrate supply remains tight in the short term. However, with the fading of tariff expectation premiums, coupled with the macro narrative of interest rate hikes, the one-sided upward trend in copper prices has temporarily come to an end. Domestic spot premiums for copper remain relatively high, and there is currently a strong willingness to purchase, which leaves a small probability of extreme price movements in the short term. After October, as some mines gradually resume operations and domestic demand growth weakens, the support for copper prices is expected to diminish on the margin.