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World's Major Leaders & Central Banks Meet: Global Week Ahead
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What’s happening, in this busy Global Week Ahead?
Middle East tensions are escalating sharply and propelling oil prices higher
A raft of major central banks, led by the U.S. Federal Reserve, make policy interest rate decisions, and
G7 leaders meet in Canada
Next are Reuters’ five world market themes, re-ordered for equity traders—
(1) Israel Bombs Iran. Geopolitics Take Center Stage. Again.
Israel's strikes on Iran mean another of the major geopolitical tail risks investors have long been worried about has just become a reality.
Markets will be closely following how Tehran — which has seen many of its proxies in the region weakened — retaliates and what the world's top powers do in the coming days.
The initial reaction has been a spike in oil prices, a drop in stocks and a safe-haven rally spanning gold to government bonds. How the sixth round of U.S.-Iran nuclear talks scheduled to be held on Sunday in Oman will evolve is also unclear.
That all has implications for the world economy, and there's likely to be more volatility unless the situation calms down rapidly.
(2) The U.S. Federal Reserve’s FOMC Meets.
The question of whether the Fed is more worried about inflation or labor markets tops the agenda for investors looking for greater clarity on the interest rate outlook amid the renewed tension in the Middle East and its implications for oil prices.
The U.S. central bank is expected to hold rates steady on Wednesday but will offer projections on monetary policy and the economy for the first time since March, when overall estimates of inflation and unemployment were lifted.
Markets anticipate roughly two 25 basis-point cuts by the end of the year — the first likely in September — a view bolstered by Wednesday's benign inflation report.
Meanwhile, the Fed and chair Jerome Powell remain under pressure to lower rates from President Donald Trump, who says a decision on the next Fed chair will be made soon.
Tuesday's May Retail Sales numbers, meanwhile, could show how tariffs may be affecting consumer spending.
(3) On Wednesday, the Bank of Japan (BoJ) Meets.
The Bank of Japan kicks off its two-day policy meeting on Monday, at a crucial time for investors seeking guidance on the BOJ's rate trajectory and bond tapering plans.
Policymakers are expected to stand pat on rates, but the devil will be in the details of its statement and Governor Kazuo Ueda's news conference.
The BOJ has vowed to keep raising rates if underlying inflation approaches its 2% target, but the path ahead has become less certain.
A trade deal with Washington remains elusive, and an unwelcome spike in long-end Japanese government bond yields in May complicates matters.
The latest bout of volatility in the JGB market has triggered a slew of responses from policymakers seeking to soothe market concerns about worsening government finances.
(4) Other Major Central Banks Meet, Following the U.S. Fed Lead.
The flurry of interest rate decisions continues in Europe, with central bank meetings scheduled in Sweden, Switzerland, Norway and the U.K.
Sweden's Riksbank will kick things off on Tuesday, with markets betting on a 25-bps rate cut.
Thursday is busy with Norges Bank expected to hold rates, while the Swiss National Bank (SNB) is seen slashing rates by 25 bps, with an outside chance of a 50-bps cut.
Swiss inflation turned negative in May, fueling discussion around whether Switzerland could be the first big economy to return to negative rates.
Meanwhile, weak U.K. jobs data raised the prospect of more Bank of England (BoE) cuts through the rest of 2025, but markets still expect no rate change on Thursday.
A U.K. spending review on Wednesday brought into focus worries over the fiscal outlook, while data on Thursday showed economic output fell sharply in April.
(5) G7 World Leaders Meet. In Alberta, Canada.
Geopolitics, trade and much more will be on the table at the Group of Seven's June 15-17 summit in Alberta, Canada.
A U.S./China agreement on a framework to put their trade truce back on track is positive. Japan, for one, hopes for a trade agreement on the sidelines.
Also watch Europe. Some suspect the EU could accept a 10% U.S. tariff with no retaliation for greater U.S. commitments to NATO and Ukraine.
The EU wants to discuss lowering a G7 price cap on Russian oil, in efforts to cut Russia's energy supplies. Most G7 members appear ready to do that without the U.S.
Ukraine's Volodymyr Zelenskyy hopes for another chat with Trump at the G7, press reports suggest.
And G7 host Canada, keen to diversify trade away from America, has invited India's Narendra Modi to attend, after bilateral relations soured in recent years.
Zacks #1 Rank (STRONG BUY) Stocks
This week, I chose three large cap stocks with a short-term #1 Rank, and a very attractive long-term Zacks VGM score of A.
(1) Sumitomo (SSUMY - Free Report) : This is a $25 a share stock, with a market capitalization of $30.7B. It is a Japanese conglomerate, found in Zacks Diversified Operations industry. I see a Zacks Value score of A, a Zacks Growth score of B, and a Zacks Momentum score of D.
Sumitomo Corp. is engaged in multifaceted business activities. It operates as an integrated trading company worldwide.
The company sells a variety of domestic products and services, conducts import, export and trilateral business transactions.
The company also provides domestic and international business investment, and participates in numerous other activities in various industrial sectors around the world.
Its business includes metal products, transportation & construction systems, infrastructure, media, network & lifestyle retail, mineral resources, energy, chemical & electronics, general products & real estate, new industry development & cross-function and corporate group.
Sumitomo Corp. is headquartered in Tokyo, Japan.
(2) Next (NXGPY - Free Report) : This is a $87 a share stock, with a market capitalization of $21.4B. It is a U.K. retailer, found in Zacks Retail-Apparel & Shoes industry. I see a Zacks Value score of C, a Zacks Growth score of A, and a Zacks Momentum score of D.
Next plc is a United Kingdom-based retailer offering fashion and accessories for men, women and children besides homeware products.
It distributes its products through three main channels:
Next Retail, a chain of stores in the United Kingdom and Eire
Next Directory, a home shopping catalogue and Website with millions of active customers, and
Next International, with many stores
The company's other businesses include:
Next Sourcing, which designs, sources and buys Next branded products
Lipsy, which designs and sells its own branded younger women's fashion products through wholesale, retail and Website channels, and
Ventura, which provides customer services management to clients wishing to outsource their customer contact administration and fulfillment activities
Next plc is headquartered in Leicester, United Kingdom.
(3) Sprouts Farmers Markets (SFM - Free Report) : This is a $157 a share stock, with a market capitalization of $15.4B. It is a U.S. grocery chains, found in Zacks Retail-Wholesale Food/Natural Foods industry. I see a Zacks Value score of C, a Zacks Growth score of A, and a Zacks Momentum score of B.
Image Source: Zacks Investment Research
Sprouts Farmers Market, Inc., which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness.
Moreover, the company has been diversifying its offerings to meet changing preferences of consumers, who are looking for more health and wellness products.
These products are generally plant-based, gluten-free, keto-friendly, and grass-fed.
The company has been focusing on natural and organic food, which is one of the fastest growing segments in the industry.
This Phoenix, AZ-based company is an everyday healthy grocery store.
The company classifies products into perishable and non-perishable categories. While perishable product categories include produce, meat, seafood, deli, bakery, floral and dairy and dairy alternatives; non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.
Key Global Macro
Want the week’s major macro event?
It is the publication of the U.S. Fed’s latest “Summary of Economic Projections”.
On Monday, a raft of Mainland China macro data lands from May. The House Price Index (prior was -4.0% y/y); Fixed Asset Investment (consensus looks for -3.9% y/y); Industrial Production (consensus looks for +6.0% y/y); Retail Sales (consensus looks for +4.9% y/y).
The OPEC monthly oil market report comes out.
On Tuesday, the Bank of Japan (BoJ) offers its monetary policy decisions. The current short-term policy rate there is 0.5%.
U.S. Retail Sales for May come out. The consensus looks for a +0.1% m/m rise, consistent with the prior month. The annual U.S. retail sales prior is +5.2% y/y.
On Wednesday, the Euro Area’s core HICP Consumer Inflation Rate for May comes out. I see the core HICP is set to be in line with the prior rate, at +2.3% y/y.
U.S. Building Permits for May (1.422M is the prior), and U.S. Housing Starts (consensus looks for 1.36M, in line with the prior at 1.36M).
U.S. weekly Initial Jobless Claims come out. These are at an 8-month high of 248K.
The FOMC meeting breaks up. The 4.33% Federal Funds rate is not expected to change. The crucial FOMC “Summary of Economic Projections” comes out.
On Thursday, the U.S. celebrates a relatively new national holiday – Juneteenth.
The Swiss National Bank (SNB) and the Bank of England (BoE) offer fresh monetary policy decisions. The BoE’s 4.25% policy rate is not expected to change.
On Friday, the People’s Bank of China (PBoC) offers its monetary policy decision. Its benchmark loan policy rate is 3.0%.
Conclusion
On June 11th, 2025 Zacks Research Director Sheraz Mian supplied his latest S&P500 earnings update—
Here are his six key points:
(1) Total S&P500 index earnings for the June quarter are expected to be up +5.2% from the same period last year, on +3.8% higher revenues.
Zacks is seeing broader and greater pressure on estimates, relative to other recent periods, since the June-quarter got underway.
(2) Q2 earnings estimates for 14 of the 16 Zacks sectors have come down since the quarter got underway.
Aerospace and Utilities are the only sectors whose estimates have moved higher.
(3) Q2 earnings estimates for the Tech and Finance sectors, the two largest contributors to aggregate S&P 500 earnings, accounting for 51% of all index earnings, have also been cut since the quarter got underway.
The quarter started with significant pressure on Tech sector estimates. But the Tech sector negative revisions trend notably stabilized in the subsequent weeks.
(4) Q2 earnings for the ‘Magnificent 7’ group of companies are expected to be up +11.8% from the same period last year on +11.2% higher revenues.
Excluding the ‘Mag 7’ contribution?
Q2 earnings for the rest of the index would be up +3.4% (versus +5.2%).
(5) The Q2 earnings season will really get going once JPMorgan and Wells Fargo kick-off the June-quarter reporting cycle for the Finance sector.
But officially, the Q2 earnings season will have gotten underway much before that, as we and others count results from companies with fiscal quarters ending in May as part of the Q2 earnings season.
Image: Bigstock
World's Major Leaders & Central Banks Meet: Global Week Ahead
What’s happening, in this busy Global Week Ahead?
Next are Reuters’ five world market themes, re-ordered for equity traders—
(1) Israel Bombs Iran. Geopolitics Take Center Stage. Again.
Israel's strikes on Iran mean another of the major geopolitical tail risks investors have long been worried about has just become a reality.
Markets will be closely following how Tehran — which has seen many of its proxies in the region weakened — retaliates and what the world's top powers do in the coming days.
The initial reaction has been a spike in oil prices, a drop in stocks and a safe-haven rally spanning gold to government bonds. How the sixth round of U.S.-Iran nuclear talks scheduled to be held on Sunday in Oman will evolve is also unclear.
That all has implications for the world economy, and there's likely to be more volatility unless the situation calms down rapidly.
(2) The U.S. Federal Reserve’s FOMC Meets.
The question of whether the Fed is more worried about inflation or labor markets tops the agenda for investors looking for greater clarity on the interest rate outlook amid the renewed tension in the Middle East and its implications for oil prices.
The U.S. central bank is expected to hold rates steady on Wednesday but will offer projections on monetary policy and the economy for the first time since March, when overall estimates of inflation and unemployment were lifted.
Markets anticipate roughly two 25 basis-point cuts by the end of the year — the first likely in September — a view bolstered by Wednesday's benign inflation report.
Meanwhile, the Fed and chair Jerome Powell remain under pressure to lower rates from President Donald Trump, who says a decision on the next Fed chair will be made soon.
Tuesday's May Retail Sales numbers, meanwhile, could show how tariffs may be affecting consumer spending.
(3) On Wednesday, the Bank of Japan (BoJ) Meets.
The Bank of Japan kicks off its two-day policy meeting on Monday, at a crucial time for investors seeking guidance on the BOJ's rate trajectory and bond tapering plans.
Policymakers are expected to stand pat on rates, but the devil will be in the details of its statement and Governor Kazuo Ueda's news conference.
The BOJ has vowed to keep raising rates if underlying inflation approaches its 2% target, but the path ahead has become less certain.
A trade deal with Washington remains elusive, and an unwelcome spike in long-end Japanese government bond yields in May complicates matters.
The latest bout of volatility in the JGB market has triggered a slew of responses from policymakers seeking to soothe market concerns about worsening government finances.
(4) Other Major Central Banks Meet, Following the U.S. Fed Lead.
The flurry of interest rate decisions continues in Europe, with central bank meetings scheduled in Sweden, Switzerland, Norway and the U.K.
Sweden's Riksbank will kick things off on Tuesday, with markets betting on a 25-bps rate cut.
Thursday is busy with Norges Bank expected to hold rates, while the Swiss National Bank (SNB) is seen slashing rates by 25 bps, with an outside chance of a 50-bps cut.
Swiss inflation turned negative in May, fueling discussion around whether Switzerland could be the first big economy to return to negative rates.
Meanwhile, weak U.K. jobs data raised the prospect of more Bank of England (BoE) cuts through the rest of 2025, but markets still expect no rate change on Thursday.
A U.K. spending review on Wednesday brought into focus worries over the fiscal outlook, while data on Thursday showed economic output fell sharply in April.
(5) G7 World Leaders Meet. In Alberta, Canada.
Geopolitics, trade and much more will be on the table at the Group of Seven's June 15-17 summit in Alberta, Canada.
A U.S./China agreement on a framework to put their trade truce back on track is positive. Japan, for one, hopes for a trade agreement on the sidelines.
Also watch Europe. Some suspect the EU could accept a 10% U.S. tariff with no retaliation for greater U.S. commitments to NATO and Ukraine.
The EU wants to discuss lowering a G7 price cap on Russian oil, in efforts to cut Russia's energy supplies. Most G7 members appear ready to do that without the U.S.
Ukraine's Volodymyr Zelenskyy hopes for another chat with Trump at the G7, press reports suggest.
And G7 host Canada, keen to diversify trade away from America, has invited India's Narendra Modi to attend, after bilateral relations soured in recent years.
Zacks #1 Rank (STRONG BUY) Stocks
This week, I chose three large cap stocks with a short-term #1 Rank, and a very attractive long-term Zacks VGM score of A.
(1) Sumitomo (SSUMY - Free Report) : This is a $25 a share stock, with a market capitalization of $30.7B. It is a Japanese conglomerate, found in Zacks Diversified Operations industry. I see a Zacks Value score of A, a Zacks Growth score of B, and a Zacks Momentum score of D.
Sumitomo Corp. is engaged in multifaceted business activities. It operates as an integrated trading company worldwide.
The company sells a variety of domestic products and services, conducts import, export and trilateral business transactions.
The company also provides domestic and international business investment, and participates in numerous other activities in various industrial sectors around the world.
Its business includes metal products, transportation & construction systems, infrastructure, media, network & lifestyle retail, mineral resources, energy, chemical & electronics, general products & real estate, new industry development & cross-function and corporate group.
Sumitomo Corp. is headquartered in Tokyo, Japan.
(2) Next (NXGPY - Free Report) : This is a $87 a share stock, with a market capitalization of $21.4B. It is a U.K. retailer, found in Zacks Retail-Apparel & Shoes industry. I see a Zacks Value score of C, a Zacks Growth score of A, and a Zacks Momentum score of D.
Next plc is a United Kingdom-based retailer offering fashion and accessories for men, women and children besides homeware products.
It distributes its products through three main channels:
The company's other businesses include:
Next plc is headquartered in Leicester, United Kingdom.
(3) Sprouts Farmers Markets (SFM - Free Report) : This is a $157 a share stock, with a market capitalization of $15.4B. It is a U.S. grocery chains, found in Zacks Retail-Wholesale Food/Natural Foods industry. I see a Zacks Value score of C, a Zacks Growth score of A, and a Zacks Momentum score of B.
Image Source: Zacks Investment Research
Sprouts Farmers Market, Inc., which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness.
Moreover, the company has been diversifying its offerings to meet changing preferences of consumers, who are looking for more health and wellness products.
These products are generally plant-based, gluten-free, keto-friendly, and grass-fed.
The company has been focusing on natural and organic food, which is one of the fastest growing segments in the industry.
This Phoenix, AZ-based company is an everyday healthy grocery store.
The company classifies products into perishable and non-perishable categories. While perishable product categories include produce, meat, seafood, deli, bakery, floral and dairy and dairy alternatives; non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.
Key Global Macro
Want the week’s major macro event?
It is the publication of the U.S. Fed’s latest “Summary of Economic Projections”.
On Monday, a raft of Mainland China macro data lands from May. The House Price Index (prior was -4.0% y/y); Fixed Asset Investment (consensus looks for -3.9% y/y); Industrial Production (consensus looks for +6.0% y/y); Retail Sales (consensus looks for +4.9% y/y).
The OPEC monthly oil market report comes out.
On Tuesday, the Bank of Japan (BoJ) offers its monetary policy decisions. The current short-term policy rate there is 0.5%.
U.S. Retail Sales for May come out. The consensus looks for a +0.1% m/m rise, consistent with the prior month. The annual U.S. retail sales prior is +5.2% y/y.
On Wednesday, the Euro Area’s core HICP Consumer Inflation Rate for May comes out. I see the core HICP is set to be in line with the prior rate, at +2.3% y/y.
U.S. Building Permits for May (1.422M is the prior), and U.S. Housing Starts (consensus looks for 1.36M, in line with the prior at 1.36M).
U.S. weekly Initial Jobless Claims come out. These are at an 8-month high of 248K.
The FOMC meeting breaks up. The 4.33% Federal Funds rate is not expected to change. The crucial FOMC “Summary of Economic Projections” comes out.
On Thursday, the U.S. celebrates a relatively new national holiday – Juneteenth.
The Swiss National Bank (SNB) and the Bank of England (BoE) offer fresh monetary policy decisions. The BoE’s 4.25% policy rate is not expected to change.
On Friday, the People’s Bank of China (PBoC) offers its monetary policy decision. Its benchmark loan policy rate is 3.0%.
Conclusion
On June 11th, 2025 Zacks Research Director Sheraz Mian supplied his latest S&P500 earnings update—
Here are his six key points:
(1) Total S&P500 index earnings for the June quarter are expected to be up +5.2% from the same period last year, on +3.8% higher revenues.
Zacks is seeing broader and greater pressure on estimates, relative to other recent periods, since the June-quarter got underway.
(2) Q2 earnings estimates for 14 of the 16 Zacks sectors have come down since the quarter got underway.
Aerospace and Utilities are the only sectors whose estimates have moved higher.
(3) Q2 earnings estimates for the Tech and Finance sectors, the two largest contributors to aggregate S&P 500 earnings, accounting for 51% of all index earnings, have also been cut since the quarter got underway.
The quarter started with significant pressure on Tech sector estimates. But the Tech sector negative revisions trend notably stabilized in the subsequent weeks.
(4) Q2 earnings for the ‘Magnificent 7’ group of companies are expected to be up +11.8% from the same period last year on +11.2% higher revenues.
Excluding the ‘Mag 7’ contribution?
Q2 earnings for the rest of the index would be up +3.4% (versus +5.2%).
(5) The Q2 earnings season will really get going once JPMorgan and Wells Fargo kick-off the June-quarter reporting cycle for the Finance sector.
But officially, the Q2 earnings season will have gotten underway much before that, as we and others count results from companies with fiscal quarters ending in May as part of the Q2 earnings season.
(6) Using that definition of Q2, we have already seen results from Costco (COST - Free Report) , AutoZone (AZO - Free Report) , and Oracle (ORCL - Free Report) .
We will have seen almost two dozen such results, by the time the big banks report their results.
That’s it for me.
Enjoy this busy, but short, 4-day trading week.
John Blank, PhD.
Zacks Chief Equity Strategist and Economist