Morning Insight: July 10, 2026

Morning Insight:July 10, 2026 LinlinGaoCertification：Z0002332gaolinlin@gtht.comYu Chen Wu (Contact)Certification：F03133175 wuyuchen@gtht.com Main Body Equity Index Futures:External factors remain the key driver of recentmarket movements, mainly reflected through overseas equity performanceand dollar liquidity conditions. Yesterday’s strong rebound may signalthe beginning of a short-term recovery phase. From a technicalperspective, the Shanghai Composite Index briefly tested the 250-daymoving average, while the Korean equity market has recently experienced a20% decline, suggesting that the current correction may have reached acertain stage of exhaustion. From a macro perspective, the weaker-than-expected U.S. non-farm payrolldata has led to a decline in the dollar index recently. Although U.S.Treasury yields have continued to rise this month, they fell insteadfollowing yesterday’s brief escalation of the U.S.-Iran conflict, whichis supportive for risk asset valuations. Domestically, policy support fortechnology sectors remains strong, with the National Science andTechnology Awards Conference held on Wednesday. Meanwhile, Thursday’s PPIdata suggested that the inflation peak may be approaching. Combined withthe release of the Q2 monetary policy report, expectations for policyeasing may improve as imported inflationary pressures ease. Overall, after the recent market correction, the risk-reward profile forequities has improved. In the short term, the market may graduallystabilize and enter a rebound phase. Open Interest Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch News Highlights: 1. China's new energy vehicle (NEV) sector reported continued growth inthe first half of 2026, with output and sales both exceeding 7 millionunits during the period, latest industry data showed on Thursday.NEV output from January to June reached 7.438 million units, while salesstood at 7.446 million units, according to data released by the ChinaAssociation of Automobile Manufacturers.Pure electric vehicles accounted for 67 percent of the total NEV salesduring the period, the data showed. (Source: Xinhua) 2. China's consumer price index (CPI), a main gauge of inflation, rose 1percent year on year in June, official data showed Thursday.The core CPI, which excludes food and energy prices, also increased 1percent year on year, according to the National Bureau of Statistics(NBS). On a month-on-month basis, CPI edged down 0.3 percent in June, the NBSdata revealed. Thursday's data also showed that China's producer price index, whichmeasures costs for goods at the factory gate, went up 4.1 percent year onyear in June. (Source: Xinhua) 3. China's producer price index (PPI), which measures costs for goods atthe factory gate, went up 4.1 percent year on year in June, the NationalBureau of Statistics (NBS) said Thursday. On a month-on-month basis, PPI dipped 0.3 percent last month, the NBSdata showed. Analyzing the monthly changes, NBS statistician Dong Lijuan said lowerinternational crude oil prices drove down prices in related domesticindustries, while seasonal factors led to divergent price trends in thebroad energy sector. Meanwhile, faster industrial upgrading boosteddemand and lifted prices in some sectors such as new materials andindustrial robots. (Source: Xinhua) Guotai Junan Futures Co., Ltd. (hereinafter referred to as "the Company") is qualified to conduct investment consultingbusiness in the futures market, as approved by the China Securities Regulatory Commission (Approval No. [2011]1449). The views and information contained in this report are intended solely for the reference of the Company’s professionalinvestors. This report is not intended to target or violate any laws and regulations of any region, country, city, or other legaljurisdiction. Due to the difficulty in restricting access to this report, we apologize for any inconvenience this may cause. If youare not a professional investor among the clients of Guotai Junan Futures, please do not read, subscribe to, or receive anyrelatedinformation from the Company. This report does not constitute a recommendation for any specific business activities,nor should it be considered as any investment, legal, accounting, or tax advice. The Company does not consider the recipientof this report to be an automatic client of the Company. Please make investment decisions based on your own risk toleranceand bear the corresponding investment risks independently. Do not rely on this content for specific investment actions. Analyst Statement The author(s) of this report hold a futures investment consulting qualification granted by the China Futures Association or possessesequivalent professional competence. The author(s) strive to ensure that the report is independent, objective, and fair. This report solelyreflects the author(s)' various hypotheses, ins