Global Asset Price Performance - Global commodity prices have declined, with major stock markets showing mixed results; the S&P 500, Dow Jones, and Nasdaq indices fell by 1.6%, 1.2%, and 3% respectively this week [2][3] - In the bond market, yields in major overseas markets mostly increased, with the 10-year U.S. Treasury yield remaining stable compared to last week [2] - Oil prices decreased, with WTI and Brent crude oil falling by 1.9% and 2.5% respectively, while London gold prices dropped by 0.1% [2] Major Central Bank Monetary Policies - The Federal Reserve is experiencing increasing divisions regarding interest rate cuts, particularly due to the government shutdown affecting key inflation data; some officials advocate for a cautious approach while others see inflation as a more pressing concern [5] - The European Central Bank announced that Bulgaria will adopt the euro on January 1, 2026, with the central bank governor gaining voting rights on the governing council [5] U.S. Economic Dynamics - The U.S. Supreme Court is questioning the legality of tariffs imposed by the Trump administration, which could lead to the potential reversal of $100 billion in tariff revenue [9] - Recent local elections indicate a resurgence for the Democratic Party, with victories in New Jersey, Virginia, and New York City [9] - Consumer confidence in the U.S. has declined to 50.3, close to historical lows, due to the ongoing government shutdown and its negative impacts [10] - The liquidity situation in the U.S. is tightening, with the SOFR rate spiking to 4.22% and the Federal Reserve's balance sheet reduction potentially exacerbating the funding shortage [10] - The U.S. labor market shows signs of stabilization with an increase of 42,000 jobs in October, although layoffs in certain sectors remain a concern [11] Other Regional Economic Dynamics - Eurozone retail sales fell by 0.1% in September, driven by weak demand for fuel and non-food items, while food and beverage sales remained stable [18] - The Eurozone manufacturing PMI held steady at 50%, indicating slight recovery, but new export orders and employment levels continue to decline [18]

Core Viewpoint - A-shares show resilience compared to the global market, supported by three key positive factors despite external market volatility [1][2][4]. Group 1: Positive Factors Supporting A-shares - The China Warehousing Index for October 2025 is reported at 50.6%, an increase of 1 percentage point from the previous month, indicating a steady recovery in economic activity [2][3]. - The People's Bank of China announced a 700 billion yuan reverse repurchase operation on November 5, aimed at maintaining liquidity in the market, alleviating concerns over external liquidity tightening [2][4]. - Active market segments, particularly in Hainan and Fujian, have shown significant gains, with multiple stocks reaching their daily limit up, reflecting strong investor interest [3][4]. Group 2: External Market Concerns - The global market adjustment is primarily attributed to sudden liquidity tightening in the U.S., driven by the ongoing government shutdown, which raises questions about the extent of its impact on A-shares [4][5]. - Analysts suggest that the U.S. liquidity crisis narrative may be overstated, as the current reserve levels are adequate, and the Federal Reserve is not under immediate pressure to expand its balance sheet [5][4]. - Concerns over high stock valuations and uncertainty regarding potential interest rate cuts in December are contributing to volatility in the U.S. market, which may indirectly affect A-shares [5][4].