Xin Lang Cai Jing·2025-12-07 09:21Market Overview - A-share market showed signs of recovery this week, driven by improved market sentiment and increased risk appetite, with major indices mostly rising. The ChiNext Index performed the best with a gain of 1.9%, while the STAR 50 Index was the worst performer with a decline of 0.1% [1][7]. Valuation and Sector Performance - The valuation of the Wind All A Index is currently at the 85.7 percentile since 2010. In terms of sector performance, non-ferrous metals, telecommunications, and defense industries performed relatively well, with gains of 5.3%, 3.7%, and 2.8% respectively. In contrast, media, real estate, and beauty care sectors lagged behind, with declines of 3.9%, 2.2%, and 2.0% respectively [2][8]. Important Events - The establishment of the Commercial Space Administration by the National Space Administration marks a significant step for China's commercial space industry. Additionally, U.S. President Trump indicated he might announce the new Federal Reserve Chair nominee in early 2026. Economic data released includes China's November PMI at 49.2%, up 0.2 percentage points from the previous month, and a surprising decrease of 32,000 in U.S. private sector employment according to the ADP report, reinforcing expectations for further Fed rate cuts [3][9]. Market Trends and Outlook - The market is still in a bull phase, but may experience wide fluctuations in the short term. The recent ADP employment data has heightened expectations for a Fed rate cut in December, contributing to a global market recovery that positively impacts A-shares. As the Central Economic Work Conference approaches, investor expectations for policy support are rising, aiding market recovery. However, the market may lack strong catalysts in the short term, leading to a focus on defensive and consumer sectors, while TMT and advanced manufacturing sectors are expected to be key areas of interest in the medium term [4][10][11].