(Corrects Earnings Beats Rate to 84% From 14%)

Danilo Masoni gives a glimpse at the future.

The wild week ahead for global earnings begins today, but it seems that profit revisions will slow down and inflation pressures may squeeze margins.

Even though the overall picture remains strong, it is not a sign of weakness. The economy is in recovery mode and this helps to offset anxiety about central banks raising interest rates or tapering their bond purchases.

The S&P 500 is just below its record peak and the number of companies that have beaten expectations in the third quarter is now close to 84%, while beats in Europe are past 60% so far, per Refinitiv I/B/E/S data.

However, the fear is justified given the Big Tech results this week. Investors fall in love with pandemic darlings but are lured by cheap stocks.

All eyes are focused on Facebook (NASDAQ) today as the FAANG season begins. This follows a 26% plunge in Snap (NYSE) shares Friday, after Snap warned that Apple privacy tweaks could cause a disruption.

Banks, long neglected, are finding new demand in the current macro environment. HSBC was surprised by a 74% increase in profits as pandemic-related bad loans receded. This allowed it to announce a $2B buyback. The shares reached a Hong Kong record 4-month high.

Futures of the main European and U.S. benchmarkindices traded just slightly in the green, as prices raced to new multiyear peak levels and U.S. 10-year Treasury yields maintained a five month high of 1.7% last week.

Key developments that should provide more direction to markets on Monday: * HSBC surprises with 74% rise in Q3 profit and $2 blnbuyback * Italy, UniCredit fail to clinch Monte dei Paschi rescuedeal * Exor (OTC:) in new talks with Covea over scrapped $9bn sale ofPartnerRE – report * Kazakhstan central bank meets * German Ifo October * U.S. building permits * U.S. earnings: Kimberley Clark, Facebook, Logitech (NASDAQ:),Packaging (NYSE:) Corp of America