CITIC Securities Expects Economic Recovery in June as U.S.-Iran Agreement Nears

According to CITIC Securities, U.S.-Iran negotiations are approaching agreement, with markets already pricing in this baseline scenario. Following an accord and the reopening of the Strait of Hormuz, both supply and demand are expected to normalize simultaneously. Current weak economic indicators reflect postponed demand ahead of the agreement and strait reopening, as economic agents await rather than rush to restock and resume operations. From June onwards, economic activity will show visible improvement as supply and demand return to equilibrium, driving changes in market strategy assumptions and gradual style rebalancing.

As macro conditions stabilize, large-cap portfolio reallocation is expected to resume, supporting recovery in undervalued sectors.