(Bloomberg) -- European equity futures climbed as investors prepared for the earnings season, looking beyond headwinds like the risk of an economic slowdown.

Contracts on the Euro Stoxx 50 climbed 1.2% by 7:03 a.m. in London. European futures are tracking last night’s gains in US stock markets as investors parsed economic data that hinted at slightly slower growth, prompting some to regard the hawkish stance that the Federal Reserve reiterated in its June meeting minutes as outdated. 

The upcoming earnings season will also be paramount in deciding the direction of equity markets for the remainder of the year as traders will get to assess how companies have managed through risks such as the war in Ukraine and higher interest rates.

There’s a probability of 70% that there will be a mild recession in 2023, according to Stéphane Monier, chief investment officer at Banque Lombard Odier & Cie SA. “From that perspective, I think it’s already embedded in the market prices and therefore we could see better equity market performance going into the second half of 2022,” he said in an interview with Bloomberg Television.

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