Stocks Will Face Reality Check over Next Two Earnings Seasons
Dow Jones
Yesterday
0949 GMT - Stock markets have absorbed rising bond yields, but valuations face a reality check over the next two earnings seasons, Panmure Liberum's Joachim Klement and Francisca Reis write. Earnings resilience and economic growth have so far protected European companies from rising inflation and a jump in government bond yields in the U.S. and Europe, the strategists say. But the upcoming period of third-quarter earnings reports, as well as companies' 2027 guidance in January, will bring the corporate impact of higher borrowing costs into focus, they say. The Stoxx 600 rises 0.2% Monday, and is up 6.8% so far this year.
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