In US, views sharply diverge on whether recession looms

A Citigroup index shows global earnings downgrades are now outnumbering upgrades at an increasing pace

Wall Street analysts appear to believe companies are largely in a strong position to pass on higher costs to consumers.

A looming recession, runaway inflation, an energy crisis in Europe and a euro that’s sunk to near parity with the dollar: corporate earnings worldwide face a laundry list of challenges this season that could create another reason to dump stocks.

After a tumultuous first half for global equities, with $18tn ($17.6tn) in value wiped out, investors are anxious to see if profits are holding up or if companies will cut guidance amid the intensifying threats to demand.