Commercial aerospace-themed ETFs opened higher; satellite ETFs from E Fund and GF Fund rose more than 3%, while Penghua and Fullgoal satellite ETFs climbed over 2%. The moves followed news China reported a major breakthrough in reusable-rocket technology as Zhuque-3 became the first Chinese orbital launch vehicle to reach orbit and be recovered on land.

Goldman Sachs Delta-one head Rich Privorotsky says current rate pressure is increasingly a bond-supply problem. Recent US data has softened and pushed down short-end yields, but long-end yields remain under pressure as markets must absorb large sovereign deficits and potentially more than $1tln a year of AI-related capex increasingly financed via the debt markets. Privorotsky says markets will need higher real rates to absorb that supply, implying long-term yields may not fall even if growth weakens; the curve could remain split — short end driven by data and central bank policy, long end constrained by fiscal and financing supply. He flags an extreme scenario where a loss of anchoring at the long end forces the Fed to stay tighter amid weak data to flatten the curve and stabilise long-term rate expectations. He identifies the mid-term market’s biggest risk as long-end rates, not the timing of a single rate cut.

US industrial capacity utilization in July 76.3% (exp. 76.3%); June revised up to 76.2% from 76.1%.