Company results buffer equities from Fed decision worries

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Company results that surprised to the upside have helped to steady global stock markets

An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange Group’s offices in London, the UK. Picture: BLOOMBERG VIA GETTY IMAGES/LUKE MACGREGORBetter-than-expected earnings from a raft of US and European companies helped steady global stock markets on Wednesday, cutting through gloom caused by rising interest rates and the threat of an energy crunch due to Russian gas supply cuts.

Futures for the US S&P 500 and Nasdaq and rose 1% to 1.5%, while a pan-European equity index was up 0.4% . A range of sectors reported solid earnings too, from carmaker Mercedes-Benz and luxury firm LVMH to energy firm Equinor and food producer Danone. Indosuez’s Manuel noted industrials and consumer discretionary firms better reflected the pressures than tech and healthcare companies.Growth and inflation

"[Company earnings] are helping equities but bonds are pricing in more economic weakness than equity markets,” Nordea chief analyst Jan von Gerich said. The supply shortfalls and possible energy rationing were among issues highlighted by the International Monetary Fund on Tuesday, when it cut global growth forecasts.

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