Julien Ponthus gives a glimpse at the future from Julien Ponthus.

Equity markets have seen a boost from optimism for the third quarter earnings season, which has helped to stabilize them.

World stocks have just enjoyed their biggest one-week rally since June with Wall Street’s favourite gauge of volatility, the , tumbling.

The earnings for Europe and the US are expected to increase by 32% and 46%, respectively. Companies that have reported their results so far have exceeded all expectations.

Goldman Sachs (NYSE:)’s 66% surge in profit on Friday, courtesy of a big wave of M&A and IPOs, came after the four largest U.S. consumer banks also shone.

However, Europe is still waiting for blue chips like ASML Holdings (NASDAQ:), and Unilever to enter the market and Netflix (NASDAQ:), to begin reporting for the “FAANG” group.

Philips cut its outlook Monday as parts shortages bite. Wall Street has more downward revisions than upward revisions. This suggests that Q3 optimism may be at its peak.

According to data, China’s economy slowed down due power supply disruptions, bottlenecks in the supply chain, and wobbles on the property markets. This has dampened sentiment and MSCI’s Asia-Pacific broadest index is currently losing 0.4%.

After reaching their highest prices since October 2018, futures on U.S. and European Equities are both in negative territory. However, oil prices have risen to well above $85/barrel.

Aside from bitcoin, bitcoin has risen to $62,000. The first American Bitcoin Futures ETF is expected to trade this week amid inflation concerns.

The prices are increasing too fast for the policymakers’ taste. Bank of England Governor Andrew Bailey warned on Sunday that investors would have to take action.

Investors have speculated that the BoE may be the first major central bank in the world to raise interest rates. This could happen later this year or as early as 2022.

Watch out for central bank actions this week. This includes a meeting at Turkey’s Central Bank, Hungary on Tuesday, and Russia’s Central Bank on Friday.

Markets should be more informed by key developments on Monday

China’s economy is struggling due to power shortage and property woes

— Phillips lowers outlook due to recall and parts shortages

ETF hope and inflation fears are at a near 6-month high

UK RightMove home prices

— U.S. industrial production