While the company is expected to be one of the top 10 most valuable companies traded on the US stock exchanges after going public, investors expect the European Central Bank (ECB) to increase interest rates on Thursday.
China will announce a series of important economic data next week. The OPEC+ group will meet to determine oil production quotas while the Iran war continues. Also, the World Cup will start in Mexico on Thursday.
1. PUBLIC OFFERING OF SPACEX
Wall Street is preparing for the IPO of Elon Musk’s rocket and satellite company SpaceX. This giant development, which is expected to shake the markets, is expected to be the first of a series of giant public offerings that will take place in the coming months.
SpaceX is expected to be listed on the Nasdaq stock market on June 12. The company aims to raise a large fund of $ 75 billion with the public offering and reach a market value of $ 1.75 trillion.
After SpaceX, artificial intelligence giants OpenAI and Anthropic are expected to go public. Anthropic announced on June 1 that it had filed a confidential application for an initial public offering in the United States.
Additionally, investors who are worried about inflation due to rising energy prices will keep their eyes on the monthly consumer price index (CPI) data from the USA.
The financial statement to be announced by the software giant Oracle may play a role in whether the rise in technology stocks will continue.
2. ECB INTEREST RATE DECISION
The European Central Bank (ECB) is preparing to become the first major central bank to increase interest rates since the outbreak of the Iran war.
In this period when the energy crisis of 2022 remains fresh in memories, the ECB does not want to miss the train this time.
The 25 basis point interest rate increase expected next Thursday is not seen as the beginning of a major interest rate hike cycle, but rather as “insurance”. With this move, the ECB aims to signal that it will not allow inflation to become permanent.
However, there is currently nothing like the strong economic growth experienced in 2022 after the global pandemic. For this reason, the ECB needs to take careful steps while increasing interest rates without further weakening the already suppressed growth.
That’s exactly why markets predict that the ECB will raise rates only two or three times this year, with the next move likely coming in September.
3RD WORLD CUP IMPACT
The 2026 FIFA World Cup will start next Thursday.
Mexico, Canada and the USA will jointly host the world’s largest sports event. Approximately five billion people watched the previous tournament on screen; Considering that there will be more teams and more stadiums this time, it is expected to attract a much larger number of viewers globally.
Due to fans’ travel, alcohol and clothing expenses, the tournament will be a major source of income for alcoholic beverage companies such as Molson Coors or Heineken, European sportswear companies such as Adidas, US hotel chain Hilton and airline American Airlines.
However, the tournament is not expected to contribute much macroeconomically. The tournament’s contribution to growth is often short-lived, with spending across the three major economies often merely shifting rather than increasing.
As for which country will take home the cup, Goldman Sachs’ prediction model based on the “Elo” rating developed for chess players gives a 26 percent chance of Spain taking the cup; Other favorites are France, Argentina and Brazil.
4. EVERYTHING IS OK
While OPEC+, formed by the Organization of Petroleum Exporting Countries (OPEC) and countries acting together, indicates that business will continue as usual despite the Iran war, according to sources, OPEC+ countries are expected to reach an agreement on the July production target increase at the meeting to be held on Sunday.
While investors await progress in peace talks that could lead to the opening of the Strait of Hormuz to traffic, oil prices are fluctuating. Oil prices had fallen by around 20 percent in May on hopes of reaching an agreement to end the war in Iran.
The seven leading members of OPEC+ increased their quotas by about 600,000 barrels per day from April to June. However, actual production decreased from 42.8 million barrels in February to 33.2 million barrels in April.
In July, the production quota is expected to be increased by approximately 188,000 barrels per day, in line with June. The International Energy Agency (IEA) had warned that global stocks could drop to critical levels before the summer months, when demand peaks.
5. CHINESE ECONOMY IS UNDER HEALTH CHECK
May trade data, to be released next Tuesday, will provide the most up-to-date picture of how Asia’s largest economy is passing the third month of the Iran war.
On Wednesday, further data on price trends will be published. With these data, it will be monitored whether the consumer price index (CPI) will continue its upward trend since October.
Another notable indicator will be the producer price index (PPI), which turned positive for the first time in nearly four years in March.
Credit data for May will also be published within the week. As you may remember, in April, the weakest growth of the last two years was recorded in the “total social financing” (TSF) data, which is the most comprehensive indicator of the total credit volume in the Chinese economy.
