① Federal Reserve Chairman Powell will attend a congressional hearing next week to answer questions from lawmakers about the semi-annual monetary policy report; ② The US CPI data for June, which will be released next Thursday, will further provide reference for the Fed's monetary policy trends; ③ The Q2 earnings season for US stocks will kick off next week, and among the six major US banks, JPMorgan, Citigroup, and Wells Fargo & Co will announce their results next Friday.
On July 7th, Caijing.com (Editor Xia Junxiong) reported that the US stock market had risen for four consecutive trading days this week (closed on Thursday due to Independence Day holiday), with the S&P 500 index and the Nasdaq Composite index repeatedly hitting new closing records. However, the market will face the test of the June CPI (Consumer Price Index) report and the Q2 earnings season next week.
The June non-farm payrolls report in the United States showed a continued cooling in the job market, increasing the possibility of a rate cut by the Federal Reserve in September. The US CPI data for June to be released next Thursday will provide further reference for the Federal Reserve's monetary policy direction, with particular attention paid to housing CPI which is a very tricky source of inflation and is considered a thorn in its eye by the Federal Reserve.
The US June PPI (Producer Price Index) data, scheduled to be released next Friday, is also an important inflation report as it will reveal the cost input status of enterprises.
Federal Reserve Chairman Powell will attend a congressional hearing next week to accept questioning from members of Congress on the semi-annual monetary policy report. As usual, the Federal Reserve will release Powell's congressional testimony one day in advance, which is next Monday.
The Q2 earnings season for the US stock market will kick off next week, with JPMorgan, Citigroup and Wells Fargo & Co among the six major US banks set to release their results next Friday. Food and beverage giant PepsiCo will release its earnings report next Thursday.
(Highlights of next week's earnings reports)
Outside the financial markets, there is another major event next week, which is whether US President Biden can hold onto his candidacy. Due to his poor performance in last week's US presidential election debate, Biden is facing an unprecedented crisis of trust. Both within the Democratic Party and among Democratic donors, there are calls for him to withdraw from the race and let another more hopeful candidate challenge Republican presidential candidate Donald Trump.
Biden is still publicly insisting that he will not withdraw from the race and is trying to counter public opinion, but the Democratic Party is becoming increasingly vocal about "forcing him out". Whether Biden can survive this crisis may be revealed next week.
Next week's important overseas economic events overview (Beijing time):
Monday (July 8th): Japanese May trade account, German May seasonally adjusted trade account, Eurozone Sentix investor confidence index for July, and the New York Fed's one-year inflation expectations for June in the United States.
Tuesday (July 9th): NFIB Small Business Confidence Index for June in the United States and Federal Reserve Chairman Powell's semi-annual monetary policy testimony before the Senate Banking Committee.
Wednesday (July 10th): Federal Reserve Chairman Powell's semi-annual monetary policy testimony before the House Financial Services Committee, announcement of interest rate decision and monetary policy assessment report by the Reserve Bank of New Zealand, EIA monthly short-term energy outlook report, and OPEC's monthly crude oil market report.
Thursday (July 11th): US June CPI data, IEA monthly crude oil market report, and German June CPI data.
Friday (July 12th): French June CPI data, US June PPI data, and one-year inflation expectations for July in the United States.
Friday (July 12): France's CPI data for June, US PPI data for June, and US one-year inflation rate expectation for July.