EUROPE WEEKLY KICKSTART: Higher rates, resilient earnings

Higher rates are forcing investors to rethink the outlook for equities. TTF gas prices are near three-year highs and sovereign spreads remain wide, yet the STOXX 600 is down just around 3% from its peak, as earnings remain strong, balance sheets remain healthy and investors view the environment as one of resilient growth. Since the latest Middle East conflict, a 10bp rise in US 10-year yields has corresponded to roughly a 1.0% fall in the STOXX 600, while a similar move in German Bund yields has been associated with around a 1.2% decline;