LONDON, July 12 (Reuters) - Pressure on Joe Biden to

step out of the U.S. presidential election race, mounting

expectations of a September Fed rate cut, Q2 earnings, an ECB

meeting and Britain's king unveiling the legislative programme

of the new Labour Government.

Don't race off for that summer break just yet.

Here's what to expect in the week ahead for world markets

from Ira Iosebashvili in New York, Yoruk Bahceli in Amsterdam,

Li Gu in Shanghai, and William Schomberg and Amanda Cooper in

London.

1/ BUSY, BUSY

It's a big week in the United States with politics, retail

sales, the Fed and bank earnings in focus.

Inflation and higher rates have tested the resilience of

households as signs of a cooling economy and inflation bolster

expectations for rate cuts to start in September. Tuesday's

retail sales data could show whether slowing growth is reflected

in the consumer sector.

Federal Reserve chief Jerome Powell speaks in Washington on

Monday, while Goldman Sachs delivers its earnings results on

July 15, followed by Bank of America and Morgan Stanley the next

day.

And markets have one eye on the looming U.S. presidential

election with Biden facing doubts about his re-election chances.

His rival, former president Donald Trump, will be officially

nominated at the four-day Republican National Convention,

starting Monday.

2/ NOTHING TO SEE?

The ECB is all but certain to keep rates steady on Thursday,

a month after its first rate cut in five years. Attention is on

whether policymakers say more about further rate cuts.

Euro zone inflation eased for the first time in three months

in June, but rose in the dominant services sector, where it has

not dropped this year.

Some policymakers felt uneasy about June's rate cut,

regretting committing weeks in advance. So they're in no hurry

to flag what's next and will scrutinise data out before the

September meeting.

No doubt, ECB President Christine Lagarde will be quizzed

about whether the bank is ready to step in and buy French and

other government bonds in the event of further turmoil. That

looks unlikely unless there are much bigger market swings, or

serious contagion to other countries' debt.

3/ CHINA'S THIRD PLENUM

China's third plenum, a seminal event typically held every

five years and originally expected late last year, kicks off on

Monday.

Reforms top the agenda: they could include the most

significant overhaul of the fiscal system in three decades to

try to redirect income from Beijing to cash-strapped regional

governments.

A parade of top-tier Chinese data releases meanwhile spans

GDP, retail sales and industrial output. While strong exports

provided respite in the first half, sluggish domestic demand and

a shrinking property sector could prove challenging for the rest

of the year.

Deflation is a worry, and central bank efforts to support

long-term bond yields could also hamper growth.

Still, investors are hopeful that new stimulus can lift

market sentiment. Chinese blue chips have edged higher

after notching up seven straight week of losses.

4/ THE KING'S SPEECH

King Charles will announce the full legislative agenda of

the new government of British Prime Minister Keir Starmer at

1200 GMT on Wednesday, but investors are likely to be watching

more keenly for inflation data out earlier that day.

Headline inflation eased back to the Bank of England's 2%

target in May but policymakers are watching services prices most

closely - they've been rising nearly 6% in annual terms.

BoE Chief Economist Huw Pill said he was unlikely to be

swayed by one set of data, puncturing bets in financial markets

on a rate cut as soon as the BoE's next scheduled monetary

policy announcement on Aug. 1.

The latest UK jobs data on Thursday will also be key for the

BoE which is worried about the strong pace of wages growth.

5/ SHARE THE LOVE

Two of Europe's STOXX 600 heavyweights - Dutch semiconductor

maker ASML and German software group SAP -

release earnings in the week to come.

The influence of big tech firms on the overall market is a

talking point. After all, stellar gains in U.S. Big Tech, led by

AI chipmaker Nvidia ( NVDA ), have skewed the overall

performance picture for the S&P 500 and much rides on their

results. The S&P is up 17% this year, but an equivalent

equal-weight index is up just 3.8%.

No doubt, market breadth is a factor in Europe too. The top

10 STOXX components make up 25% of the index, versus around 20%

five years ago, LSEG data shows. But the STOXX's outperformance,

up 7.8% YTD, versus its equal-weighted equivalent, up 3.8%, is

narrower than its U.S. peer.

Europe's equity market may be smaller than the U.S., but the

love is spread more widely.

(Compiled by Dhara Ranasinghe; Graphics by Kripa Jayaram, Pasit

Kongkunakornkul, and Prinz Magtulis; Additional reporting by

Kevin Buckland, Editing by Barbara Lewis)