Market Overview - The A-share market is currently lacking catalysts, leading to increased volatility pressure. The downward space for large-cap stocks is relatively limited under the support of the Central Huijin Investment. Short-term focus is recommended on defensive sectors such as banks and low-volatility dividend stocks [2][4] - New consumption and innovative pharmaceuticals are facing higher adjustment risks in the short term, suggesting that investors should wait for risk release before seeking more cost-effective investment opportunities [2][4] Stock Market Factors - The large-cap value style remains dominant in the market, while the volatility of both large and small-cap styles has decreased. The volatility of value and growth styles is at a near-year low [6][8] - The excess return dispersion of industry indices is at a near-year low, with a decrease in the proportion of rising constituent stocks and an increase in industry rotation speed [6][8] - Market activity remains low, with the market volatility at a near-year low and a slight increase in turnover rate [7][8] Commodity Market Factors - In the commodity market, the trend strength of black and precious metals has decreased, while the trend strength of agricultural products has increased. The basis momentum of precious metals and non-ferrous metals has rapidly declined [19][22] - The volatility of energy and precious metals has slightly increased, while other sectors remain at near-year low volatility levels. Liquidity performance is mixed across sectors, with the energy sector at a near-year high in liquidity [19][22] Options Market Factors - The implied volatility levels of the SSE 50 and CSI 1000 show no significant trend, with the implied volatility of CSI 1000 remaining at historically low levels. The skewness of put options for CSI 1000 has increased, indicating a temporary alleviation of market concerns regarding small-cap stocks [28] Convertible Bond Market Factors - In the convertible bond market, valuations continue to rise, with the premium rate for bonds converting at 100 yuan increasing and approaching the peak seen in May. The proportion of bonds with low conversion premiums has significantly decreased, while market transaction volume remains stable within a fluctuating range [31]