Global markets: Shares shrug off oil swings as earnings season looms
SPY•European shares rose 0.6% and S&P 500 futures were nearly flat as oil climbed 1.3% to $106 a barrel. Investors focused on US inflation data and third-quarter earnings, with S&P 500 earnings expected to rise more than 30%.
1. Markets look to earnings
European shares rose on Monday and US futures were broadly steady as investors weighed higher oil prices against the start of earnings season and upcoming US inflation data. The STOXX 600 gained 0.6%, while S&P 500 futures added 0.05% and Nasdaq futures slipped 0.15%.
2. Oil and inflation risks
Brent crude rose 1.3% to $106 a barrel after an initially lower start, as attacks on shipping and airports in the Gulf underscored risks to energy supplies. US consumer prices are expected to rise 0.6% for the month and 3.7% annually, while core inflation is forecast at 0.2% monthly and 2.5% annually.
3. Earnings expectations
JPMorgan and Goldman Sachs are due to report on Tuesday, followed by Bank of America on Wednesday. S&P 500 earnings are expected to climb more than 30% in the third quarter, while STOXX earnings are forecast to rise 21%, or 9.7% excluding energy.
