Flush with hope that impressive disinflation will allow the Federal Reserve to end its rate-hike campaign this month, world markets now navigate a second-quarter corporate earnings season which the bigJPMorgan, Citigroup, Wells Fargo, BlackRock and State Street all report second-quarter results that will reflect the immediate aftermath of the March regional banking scare, higher interest rates and downbeat investment banking activity.
Overall, the U.S. earnings season is expected to show S&P500 profits down 6.4% from the same period a year earlier - with revenue down a more modest 0.8%, according to Refinitiv research. Financials overall are expected to have advanced 5.4%. While the full picture will all unfold over the coming weeks, the dominant market mood is still clearly one cheering Wednesday's drop in U.S. headline inflation below 3% for the first time in more than two years.report even showed a dalliance with outright deflation at factory gates and there were further signs the jobs market remains robust. Export and import price readings are the latest sounding on Friday.Although futures now bet it will deliver a final quarter point rate hike to the 5.