The three major US stock indexes all recorded gains this week, with the Dow Jones Industrial Average up 0.29%, the S&P 500 Index up 1.32%, and the Nasdaq up 2.38%.
Investors have gone through a roller coaster week, with JOLTs job vacancies and ADP employment data in the United States in April both lower than expected, indicating a cooling job market and boosting market sentiment. However, the May non farm payroll data released on Friday significantly exceeded expectations, suppressing investors' bets on the Federal Reserve's interest rate cut this year.
Currently, investors expect the Federal Reserve to cut interest rates once or twice this year, with a high likelihood of the first rate cut occurring in September of this year. But there are also pessimistic forecasters who believe that decision-makers will not cut interest rates until November, or even this year.
Therefore, the Federal Reserve decision to be announced early next Thursday Beijing time will be particularly important. Although there is almost no suspense that the Fed will maintain interest rates unchanged, this meeting will release economic expectations, and the market will focus on the interest rate chart. The March chart shows that decision-makers predict three rate cuts this year, and with the recent slowdown in US inflation, Federal Reserve officials may abandon their predictions of three rate cuts.
Before the Federal Reserve announces its interest rate decision, the US Department of Labor will release May CPI data next Wednesday evening, which means that Federal Reserve Powell may be asked about the data at a press conference after the interest rate decision. Another important inflation data - the US May PPI will be released next Thursday evening.
The Bank of Japan will announce its interest rate resolution next Friday. According to the Nihon Keizai Shimbun, it is expected that the Bank of Japan will consider whether to reduce the purchase scale of government bonds of about 6 trillion yen (38 billion dollars) per month next week to achieve policy normalization.
In terms of financial reports, software giant Oracle and chip giant Broadcom will release their second quarter results next week.
(Next week's financial report highlights)
Overview of important overseas economic events next week (Beijing time):
Monday (June 10th): Japan's Q1 real GDP annualized quarterly rate correction, US May New York Fed 1-year inflation expectations, Eurozone June Sentix investor confidence index
Tuesday (June 11th): OPEC releases monthly crude oil market report, UK May unemployment data, and US May NFIB Small Business Confidence Index
Wednesday (June 12th): US May CPI data, Germany May CPI data, EIA monthly short-term energy outlook report, IEA monthly crude oil market report, UK April manufacturing/industrial output data
Thursday (June 13th): The Federal Reserve announces interest rate decisions and economic expectations, Federal Reserve Chairman Powell holds a monetary policy press conference, and US May PPI data
Friday (June 14th): Bank of Japan announces interest rate resolution, France's May CPI data, and US one-year inflation rate expectations for June