Market Overview - The Hang Seng Index closed at 25,562, down 0.15% for the day but up 27.24% year-to-date[3] - The Hang Seng China Enterprises Index fell 0.34% to 9,177, with a year-to-date increase of 25.46%[3] - The Hang Seng Tech Index decreased by 0.35% to 5,664, showing a year-to-date rise of 26.33%[3] Stock Performance - Southbound funds recorded a net purchase of HKD 12.72 billion in Hong Kong stocks[9] - Major tech stocks showed mixed results, with Alibaba slightly up while Tencent, JD.com, and Meituan fell within 1%[9] - Biopharmaceutical stocks performed strongly, with WuXi AppTec surging over 11% and several others rising more than 8%[9] U.S. Market Trends - The Dow Jones Industrial Average fell 0.42% to 44,838, while the Nasdaq Composite dropped 0.38% to 21,179[9] - Notable declines in popular tech stocks included Meta down over 2% and Intel, Apple, and Tesla each down over 1%[9] - Novo Nordisk's shares plummeted over 21% after lowering its sales and profit growth forecasts for 2025[9] Japanese Market Insights - The Nikkei 225 index decreased by 0.79% to 40,998, marking three consecutive days of decline[9] - Semiconductor stocks faced significant sell-offs, with Disco down 2.66% and Advantest down 1.05%[9] Economic Indicators - The U.S. trade deficit narrowed by 10.8% in June to USD 86 billion, reflecting a decrease in imports[13] - The Atlanta Fed's GDPNow model estimates a 2.9% growth rate for Q2 2025, up from a previous estimate of 2.4%[13]

Market Overview - The US stock market closed lower, with the S&P 500 and Nasdaq retreating from historical highs as investors awaited the Federal Reserve's interest rate policy statement and reacted to disappointing corporate earnings [1][2] - The Dow Jones Industrial Average fell by 204.57 points to 44,632.99, a decrease of 0.46%; the S&P 500 dropped 18.91 points to 6,370.86, down 0.30%; and the Nasdaq Composite declined by 80.29 points to 21,098.29, a drop of 0.38% [1] US-China Economic Relations - Chinese Vice Premier He Lifeng and US Treasury Secretary Janet Yellen held constructive talks in Stockholm, focusing on US-China economic relations and macroeconomic policies [2] - Both sides emphasized the importance of a stable and healthy economic relationship, which is beneficial for their development goals and global economic stability [2] Corporate Earnings Performance - UnitedHealth reported Q2 adjusted EPS of $4.08, below the expected $4.59, and lowered its full-year EPS forecast to at least $16, causing its stock to drop by 7.5% [2] - Boeing's Q2 revenue was $22.75 billion, exceeding expectations, but reported a core EPS loss of $1.24, leading to a 4.4% decline in its stock [3] - Merck's Q2 sales were $15.81 billion, slightly above expectations, but its adjusted EPS of $2.13 was down year-over-year, resulting in a 1.7% stock decline [3] - UPS's stock plummeted by 10.6% after reporting Q2 adjusted EPS of $1.55, slightly below expectations, and failing to provide full-year guidance [3] - Procter & Gamble's Q4 sales were $20.89 billion, with core EPS of $1.48, both slightly above expectations, but its growth forecast for FY2026 was below market expectations [3] - Novo Nordisk's stock fell approximately 22% after lowering its sales and profit outlook for FY2025 due to poor performance of its weight-loss drug Wegovy [4] Economic Data - The US trade deficit narrowed to $86 billion in June, a decrease of 10.8%, with imports down by 4.2% [4] - Job openings in the US fell to 7.44 million, below the expected 7.5 million, indicating stable labor demand [5] - Consumer confidence in the US rose in July, with the index increasing to 97.2, slightly above expectations [6] Upcoming Events - Investors are focused on the upcoming non-farm payroll report, with expectations that the Federal Reserve will maintain interest rates [7] - Major tech companies, including Meta, Microsoft, Apple, and Amazon, are set to release earnings this week, which are anticipated to significantly impact overall market trends [4]

Core Viewpoint - Merck's (MRK.US) stock experienced a significant decline of approximately 8.8%, reaching a low of $76.67, following disappointing second-quarter earnings results [1] Financial Performance - Merck reported a 2% year-over-year decrease in revenue, totaling $15.81 billion, which was slightly below analyst expectations of $15.9 billion [1] - The adjusted earnings per share were $2.17, surpassing analyst forecasts of $2.02 [1] Product Sales - Sales of the HPV vaccine Gardasil plummeted by 55%, primarily due to stagnant demand in the Chinese market and weakened demand in Japan [1] - Excluding China, Gardasil sales still saw a decline of 3% [1] Supply Chain and Future Plans - The company announced an extension of the suspension of HPV vaccine supplies to China until the end of 2025, a significant delay from the earlier expectation of resuming supplies mid-year [1] - Merck plans to cut annual spending by $3 billion and will reduce positions in administrative, sales, and research departments [1]