War and peace of mind: World market themes for the week ahead

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What investors will be watching over the next seven days

Geopolitics are at the forefront of everyone’s minds after war broke out between Israel and Palestinian militant group Hamas, and the mood in markets is jittery at best.

Bank of America and Goldman Sachs both report Oct. 17. Other heavy hitters include healthcare giant Johnson & Johnson on Oct. 17, Netflix on Oct. 18 and Philip Morris International on Oct. 19 Recent data already suggests the worst may be over for parts of the economy. Wednesday could bring confirmation, with the release of GDP, industrial output and retail sales figures.A rally of Law and Justice supporters watch a televised leaders’ debate in Warsaw on Oct. 10.Poles vote for a new government in a high-stakes election on Sunday, following a tight, unpredictable race in central Europe’s largest economy.

Banks have long underperformed the region’s main stock market. And just ahead of quarterly earnings next week, European bank shares are sporting a dividend yield of almost 8%, making them cheaper on this basis than during the 2008 global financial crisis.Analyst forecasts collated by European asset manager Amundi show European banks are expected to grow adjusted earnings by 25% this year, followed by a 6% gain in 2024.

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