As the US stock market enters a terrible situation of technology and value stocks falling hand in hand in the last two trading days of this week, the intensive influx of financial reports and inflation data next week will become the key to determining the overall direction of the future.
After the market closes next Tuesday, Tesla and Google's parent company Alphabet will both release their latest financial reports, while Apple and Microsoft will announce their results in the following week. Among them, Tesla CEO Musk's views on the postponement of autonomous taxi Robotaxi and Trump's electric vehicle policy have attracted market attention, and the concept of "Robotaxi" has also been a focus of the Chinese stock market in recent days.
By the way, investors who speculate on the "low altitude economy" can pay attention to the Farnborough International Airshow, which will be unveiled on Monday. In addition to traditional large aircraft manufacturers, eVTOL (electric vertical takeoff and landing aircraft) companies have increasingly become the focus of attention at various air shows.
There are also highlights in terms of economic data - Thursday's initial US Q2 GDP and Friday's June PCE inflation data. At present, the market has fully priced that the Federal Reserve will initiate interest rate cuts in September, and there will be at least one more rate cut within the year. But such expectations also require continuous data to provide 'confidence'.
(Source: CME)
At the same time, the People's Bank of China will announce the latest Loan Market Quotation Rate (LPR) next Monday. The Bank of Canada will release its latest interest rate decision on Wednesday. After the rapid appreciation of the Japanese yen this week, the situation of Tokyo CPI next week will also set the tone for the Bank of Japan's policy meeting at the end of the month.
Unlike this week's popular "Trump deal," the former US president, who was "less than 0.635 centimeters away from a bullet at one point last week," will attend the Bitcoin conference next week. He will give a speech on stage next Saturday (July 27th), which is why the virtual currency market is so excited this week. On the other hand, the "withdrawal controversy" surrounding US President Biden is still in a stalemate. Considering that the Democratic National Convention will be held at least until August, it cannot be ruled out that the current situation may continue to persist (and worsen) for another week.
The geopolitical turmoil in the Middle East has shown signs of escalation in recent days. Following a drone attack by Houthi militants in Yemen on Tel Aviv, which resulted in one death "just a few steps away from the Tel Aviv branch of the US Embassy". The Israeli War Cabinet approved a rare emergency airstrike on the Hodeidah area of Yemen on Saturday.
From the scene footage, Israeli missiles hit the oil storage facilities at the port of Hodeidah, causing a massive fire.
According to earlier reports from the Yemeni health department, Israeli airstrikes have injured at least 80 people, some of whom have suffered severe burns. Yemeni Houthi spokesman Yahya Saariam issued a statement late, stating that the Houthi will "respond" to Israel's actions and will not hesitate to strike Israel's important targets.
As the next critical node in the Middle East conflict, Israeli Prime Minister Netanyahu, who commanded Saturday's attack, will visit the United States next week and deliver a speech in the US Congress on Wednesday. The performance of various factions will also become an important focus of public opinion. The White House also expects President Biden, who is currently under home quarantine, to meet with Netanyahu at that time.
In this context, the Paris Olympics will officially kick off on Friday local time. The capital market will also closely monitor the impact of the Olympics on the consumer goods sector. According to NBCUniversal's calculations, sponsors of the International Olympic Committee spend 18% more money on the Paris Olympics than on the 2021 Tokyo Olympics. A group of consumer stocks that were heavily invested in the Olympics are expected to receive a boost during the Olympics.
Overview of Important Financial Events Next Week (Beijing Time)
Monday (July 22): China's one-year/five-year loan market quoted interest rates, G20 finance ministers and central bank governors meeting, US Secret Service Director attending House hearing on Trump assassination, Farnborough Airshow unveiling (until July 26)
Tuesday (July 23): Türkiye's central bank announced its interest rate resolution
Wednesday (July 24th): Eurozone/Germany/France/UK PMI data, Bank of Canada releases interest rate decision and monetary policy report, Israeli Prime Minister Netanyahu delivers speech in US Congress
Thursday (July 25th): Initial annualized quarterly rate of US Q2 real GDP/core PCE price index
Friday (July 26th): Tokyo CPI for July in Japan, annual rate of core PCE price index for June in the United States, monthly rate of personal expenditure for June in the United States, interest rate decision announced by the Russian central bank, opening of the Paris Olympics
Weekend: Former US President Trump attends Bitcoin conference and delivers speech
