LIVE MARKETS-Worries building but earnings, growth holding up

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WORRIES BUILDING BUT EARNINGS, GROWTH HOLDING UP

The market has a lot to worry about. U.S. trade negotiations are still in progress, wars are ongoing in the Middle East and Europe, long-end bond yields are elevated and Fed independence looks under threat from Trump's attacks on the central bank's chair.

All these things remain a threat yet under the hood, things are ticking along nicely.

"So far macro and micro fundamentals remain resilient, which has helped equities to shrug off rates volatility," write Barclays equity strategists.

Citi's economic surprise index turned positive in the U.S. last week, while Europe, UK, China and EM indexes are also positive, indicating data has largely beaten expectations recently.

And that leads in to earnings season, where markets are watching for how tariffs are impacting the top and bottom line.

"While it is early days, the Q2 reporting season is off to a decent start, with EPS beats confirming that corporate resilience continues despite the broad macro/policy uncertainty," Barclays says.

Given the threats, they believe having downside hedges makes sense but continue to see a path for European equities to break out and reach new highs by the end of the year.

(Samuel Indyk)

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EARLIER LIVE MARKETS POSTS:

STOXX HEADS HIGHER, SET FOR WEEKLY GAIN CLICK HERE

EUROPE BEFORE THE BELL: FUTURES HIGHER AS CONSUMER HOLDS UP CLICK HERE

STOCKS BUOYANT BUT JAPAN VOTE BRINGS RISK CLICK HERE