Morning News

Source: Wall Street News

## Market Overview

Last Friday:

Driven by solid earnings and expectations for a U.S. trade deal, the S&P 500 and Nasdaq hit new highs. Tesla rebounded 3.5% but still fell more than 4% during its earnings week. Google rose over 4% in its earnings week. European auto stocks gained more than 4% for the week. After Trump said he believed Powell was ready to start cutting interest rates, U.S. Treasury yields hit a new daily low. Gold fell more than 1% intraday, posting a third straight decline. In China's night session, coking coal fell nearly 8% and coke dropped over 7%.

During the Asian session, A-shares and H-shares fell collectively, with the Hang Seng Index down more than 1%. The STAR 50 Index surged in the afternoon, driven by a rally in chips and semiconductors, while lithium carbonate and coking coal futures hit their daily limits. Treasury bonds fell again.

Early in Monday's Asian session, after Europe and the U.S. reached a trade deal, U.S. stock futures rose, with Nasdaq 100 and S&P futures gaining 0.5% and 0.4% respectively. Spot gold dipped, approaching $3320.50 at one point, down 0.5%; the euro against the dollar rose more than 0.2%.

## Key News

China Securities Regulatory Commission: Strive to consolidate the stable and positive momentum of the market, deepen reforms to stimulate the vitality of the multi-level market, and further strengthen the foundation from both the asset and capital ends.

State Council Executive Meeting: Deploy measures to gradually promote free preschool education.

Chinese Ministry of Foreign Affairs clarified its position on issues of disagreement between China and the EU, such as the so-called "overcapacity" and industrial subsidies.

Li Qiang attended the opening ceremony of the 2025 World Artificial Intelligence Conference and the High-Level Meeting on Global Governance of Artificial Intelligence and delivered a speech; Shanghai issued a batch of intelligent connected vehicle operation licenses, with driverless taxis open to the public, costing only 3 yuan for 7 kilometers.

China's profits of industrial enterprises above designated size in June fell 4.3% year-on-year, with the decline narrowing. The equipment manufacturing industry played a prominent supporting role, and the profit of the automobile industry increased by 96.8%.

The five-day daily limit surge of domestic coking coal came to a halt. After the exchange announced trading limits, both coking coal and coke plummeted in the night session, with risks accumulating behind the "anti-involution" carnival.

The United States and the European Union reached a trade deal with a 15% tariff. Trump said the EU would increase investment in the U.S. by $600 billion and purchase $750 billion in energy products; von der Leyen said the 15% tariff rate was the best result the EU could achieve, with unified tariffs for automobiles, chips, and pharmaceuticals, and reduced metal tariffs, which differed from the U.S. statement. Trump said pharmaceuticals were not included, and Lutnick said chip tariffs would be determined within two weeks.

Trump said on Friday that most agreements are expected to be completed by August, and the possibility of Canada reaching a new deal before the deadline is slim. On Sunday, he said he is considering reaching agreements with three to four countries. The U.S. is set to impose tariffs on lumber: the Trump administration found that Canada dumped softwood lumber. South Korea is preparing for "investment for tariffs," with a proposed investment scale exceeding $100 billion. U.S. officials said Trump has the right to restore higher tariff levels if other countries fail to fulfill their investment commitments.

Trump: Powell is a good person, and I believe he is ready to start cutting interest rates. I like a strong dollar, but a weak dollar makes U.S. companies make a lot of money.

Reports say that after the U.S.-Japan agreement, the Bank of Japan may restart interest rate hikes within the year; the U.S. and Japan have different statements on the "550 billion U.S. dollars investment": Trump said it was all "signing bonuses," while Japan said "the U.S. also has to contribute money."

U.S. durable goods orders fell 9.3% month-on-month in June, the largest monthly decline since the epidemic, dragged down by aircraft orders.

Media: Tesla's robot production is far below the target. It promised to produce 5,000 units by the end of the year, but only a few hundred have been produced so far.

## Market Closing Quotes

European and American stock markets: The S&P 500 rose 0.40% to 6388.64 points, up 1.46% for the week. The Dow Jones Industrial Average rose 0.47% to 44901.92 points, up 1.26% for the week. The Nasdaq rose 0.24% to 21108.32 points, up 1.02% for the week. Europe's STOXX 600 index closed down 0.29% at 549.95 points, up 0.54% for the week.

A-shares: The Shanghai Composite Index fell 0.33% to 3593.66 points; the Shenzhen Component Index fell 0.22% to 11168.14 points; the ChiNext Index fell 0.23% to 2340.06 points.

Bond market: By the end of the bond market session, the U.S. 10-year benchmark Treasury yield was about 4.39%, down nearly 1 basis point intraday, and down about 3 basis points for the week; the U.S. 2-year Treasury yield was about 3.92%, roughly flat, and up about 5 basis points for the week.

Commodities: WTI September crude oil futures closed down 1.32% at $65.16 per barrel, down 1.35% for the week. Brent September crude oil futures closed down 1.07% at $68.44 per barrel, down 1.21% for the week. COMEX August gold futures closed down 1.12% at $3335.6 per ounce, down 0.68% for the week.

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