Danilo Masoni gives a glimpse at the future.

This year’s start has been turbulent for the world market with interest rate rises in the U.S. beginning to froth global equity valuations, leaving investors wondering how much longer the bull run will continue.

There will be talk of the Federal Reserve cutting off massive stimulus. However, Wall Street is experiencing earnings season and this could provide some support for fear-stricken sentiment as companies report double-digit profits increases.

For the week ahead, investors won’t hear any hawkish comments from Fed officials. They are in blackout mode now before their Jan 26 policy meeting.

Earnings are forecast to grow 23.1% over the next three months in 2021, and are projected to rise 48.5%. Yet, the expectations are high. Management teams may find it difficult to please markets used to achieving stellar corporate growth.

The shares of most Wall Street banks plunged last week due to disappointing numbers. This resulted in the U.S. losing its main equity benchmark twice consecutively. It will be quieter today as Wall Street closes for Martin Luther King Day.

The European index futures saw slight increases at the open. To cushion an economic slowdown, China’s central banking unexpectedly reduced the cost of borrowing medium-term loans. Chinese stocks also rose.

Finally, Credit Suisse (SIX): Chairman Antonio Horta Osorio is resigning following an internal investigation into his conduct. This raises questions about the bank’s strategy. The cash market opened ahead of its shares, which rose by 2%.

Key developments that should provide more direction to markets on Monday: * China’s economy rebounded in 2021 from itspandemic-induced slump but the pace slowed further in Q4 off theback of weak consumption and a property downturn * GlaxoSmithKline (NYSE:) rejected a 50-billion-pound offer fromUnilever for its consumer goods arm, saying it undervalued thebusiness * ECB speaker: President Christine Lagarde * Davos WEF starts * EU finance ministers meet * German foreign min Baerbock visits Ukraine * UK Rightmove (OTC:) House prices Jan