citic securities·2025-08-01 03:51Market Overview - Chinese market experienced a significant decline, with major indices dropping over 1%, while AI stocks remained the only bright spot[3] - European markets showed weakness as investors digested a large volume of corporate earnings reports, with the Stoxx 600 index down 0.75%[11] - U.S. stock market faced resistance, with the S&P 500 retracting 1% from earlier gains, despite strong performances from large tech stocks like Meta and Microsoft[11] Economic Indicators - China's manufacturing PMI for July fell to 49.3, a decrease of 0.4 points from the previous month, indicating a contraction in manufacturing activity[6] - Non-manufacturing PMI also declined to 50.1, down 0.4 points, reflecting a slowdown in the service sector[6] - U.S. core PCE inflation rose to 2.79% year-on-year, slightly above expectations, indicating persistent inflationary pressures[32] Commodity and Currency Trends - International oil prices fell by 1%, with WTI crude at $69.26 per barrel and Brent crude at $72.53 per barrel[29] - The U.S. dollar index saw a slight increase of 0.2%, while gold prices experienced a minor decline[29] - The Japanese yen led declines among G-10 currencies after the Bank of Japan maintained its interest rates[29] Corporate Earnings Highlights - Apple reported a 10% increase in Q3 revenue to $94 billion, driven by strong iPhone sales, which totaled $44.6 billion, up 13% year-on-year[9] - Amazon's Q2 net profit rose 34.8% to $18.2 billion, but its Q3 operating profit forecast fell short of market expectations, leading to a post-earnings stock drop of over 6%[9] - Vale's Q2 revenue was $8.8 billion, down 11% year-on-year, but net profit increased by 6% to $2.12 billion, aided by strong copper and nickel performance[9] Investment Insights - The U.S. Treasury yield curve remained stable, with the 10-year yield at 4.37%, as investors awaited upcoming non-farm payroll data[32] - China's investment-grade bond spreads narrowed by 1-2 basis points, indicating a mixed performance in the Asian bond market[32] - The recent U.S. copper tariffs are expected to benefit domestic copper processing companies, with recommendations for investments in related sectors[16]