Stock investors are caught between the pull of strong earnings and mounting macroeconomic risks, with key events carrying binary outcomes that argue for some protection. Markets in the US and Europe have traded sideways for a month as the boost from the earnings season shows fatigue. Equities are not only facing the possibility of interest-rate hikes by the Federal Reserve, but also an escalation in the Middle East and US midterm elections that remain too close to call.

A Wall of Political and Economic Risks Is Growing, taking stock shows.