The public listing of SpaceX will take centre stage as it looks likely to become one of the top 10 most valuable U.S. listed firms after it goes public, while a rate hike from the European Central Bank on Thursday seems nailed on.
Elsewhere, China releases a bunch of data and the OPEC+ group meets to decide its oil output quotas against the backdrop of the Iran war. And the World Cup kicks off in Mexico on Thursday.
Here's what you need to know about the coming week in financial markets by Lewis Krauskopf in New York, Yoruk Bahceli, Karin Strohecker and Ahmad Ghaddar in London and Gregor Stuart Hunter in Singapore.
IP-OH!
Wall Street is bracing for the initial public offering of Elon Musk's rocket and satellite company SpaceX — a seismic market event that will likely be the first of several mega IPOs in the coming months.
SpaceX's Nasdaq debut — expected on June 12 — is looming as high-flying tech stocks have led a stunning rally for major U.S. equity indexes. The company plans to raise a record-setting $75 billion and aim for a valuation of $1.75 trillion.
The listing is expected to be followed by debuts from AI giants OpenAI and Anthropic, which on June 1 said it had confidentially filed for a U.S. IPO.
The monthly U.S. consumer price index will also be in focus, as investors grapple with inflation worries sparked by higher energy prices. Oracle's (ORCL.N) earnings report will keep the tech stock surge and the red-hot AI trade in the spotlight.
NIP IT IN THE BUD
The ECB is set to become the first among the biggest central banks to hike rates since the Iran war.
With the memory of 2022's energy crisis still fresh, Frankfurt is keen to not miss the boat this time.
Thursday's expected 25-basis-point rate hike is viewed as "insurance" — signalling the ECB won't let inflation get entrenched — rather than the start of a big hiking cycle.
It's not a post-pandemic economic boom like in 2022, so policymakers have a tightrope to walk as they try to hike without exacerbating the growth hit already underway from the crisis.
That's why markets reckon the ECB will only hike rates two or three times this year, with the next move most likely in September.
THE MOST IMPORTANT OF THE LEAST IMPORTANT THINGS
The 2026 FIFA World Cup kicks off on Thursday. The world's biggest sporting event will be co-hosted in Mexico, Canada and the United States. Roughly 5 billion people tuned in last time — with more teams and venues, expect an even bigger global binge.
It's a big revenue spinner for beverage companies such as Molson Coors (TAP.N) or Heineken (HEIN.AS), European sports apparel producers like Adidas (ADSGn.DE), or U.S. tourism (HLT.N) and airline operators (AAL.O) as fans travel, stock up on beer and snap up merchandise.
The macro boost? Less dazzling — growth tends to be short-lived and spending often just reshuffled, especially when split across three large economies.
And for the office sweepstake: Goldman Sachs' prediction model — based on Elo ratings devised for chess players — gives Spain the edge at 26%, followed by France, Argentina and Brazil.
BUSINESS AS USUAL
Oil prices have been volatile as investors await progress in peace talks that could unlock the Strait of Hormuz. In May, prices fell more than 19%, mainly on hopes of a deal.
July's quota is set to rise by about 188,000 bpd, in line with June. The International Energy Agency has warned global inventories could hit critical levels ahead of peak summer demand.
CHINA HEALTH CHECK
China's economy has its monthly health check in the coming week, with trade data for May due on Tuesday set to provide the latest update on how Asia's biggest economy coped with the third month of the Iran war.
On Wednesday, investors will get another read on price trends, including whether consumer price inflation will remain on the upward trajectory it has been in since October. A gauge of producer prices will also draw attention, after turning positive in March for the first time in almost four years.
Lending data for May is also due for release during the week. April saw the weakest growth for two years in total social financing, the broadest gauge of credit to the Chinese economy.
