Supply crisis expected to hit earnings and stock markets

The ongoing supply chaos is set to plague Europe's third-quarter earnings.

Fashion retail giant H&M is just one of many companies that have warned about supply problems in the run-up to the key Christmas trading season.

Cost pressures, supply-chain chaos and a reopening letdown are set to plague Europe’s third-quarter earnings season, setting investors up for more disappointment than elation.

While strong numbers from behemoths like LVMH and SAP reassured European stock investors last week, further good news may be needed to keep the rally alive. Rising inflation and a stalling global recovery pose a challenge to further market gains.