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Wall Street hopes for limited Iraq incursion

U.S. stock-index futures pointed to a higher open on Wall Street on Monday, on hopes that America's latest intervention in Iraq will prove limited.

President Barack Obama said on Saturday that U.S. airstrikes had already destroyed arms that Islamic State militants could have used against Iraqi Kurds. He did warn however that there would be no "quick fix" to the crisis.

Shares in Europe were also boosted on signs that the crisis in Ukraine were abating. Government forces there are preparing to recapture the city of Donetsk, after making significant gains that have divided rebel forces.

Over in Gaza, Israel and the Palestinians agreed on Sunday to an Egyptian proposal for a new 72-hour ceasefire.

Away from the macro side of things, the US earnings season is winding down with just 16 S&P 500 firms (less than 4 percent of index market cap) expected. We may get some color on US consumers with the likes of Wal-Mart, Kohl's and Nordstrom lined up to report.

Stocks to watch on Monday include energy company Kinder Morgan, which is bringing all of its publicly traded units under one roof in a $70 billion deal. The day will be a quiet one for earnings however, with Priceline and Sysco among the few companies reporting second-quarter results before Wall Street opens.

Over 85 percent of S&P 500 firms having now reported their second-quarter results. So far, the earnings-per-share (EPS) beat:miss ratio is running at a pretty solid rate of around 3:1, according to Deutsche Bank. The ratio is lower for sales revenue, with just short of two-thirds of firms exceeding consensus estimates.

There is no major data releases scheduled for Monday in the U.S. Data flow will pick up from Tuesday onward, with the monthly budget and JOLTs jobs series.

Friday proved the best session in five months for both the Dow Jones Industrial Average and S&P 500, which rose 1.1 and 1.2 percent respectively. The Nasdaq climbed 0.8 percent.

Kerry Series, founder of Eight Investment Partners, told CNBC Asia: "We're now in a phase where markets will shrug off bad news and [look] for stable economic growth around the world."

"There are still good earnings from corporate firms, M&A activities and still relatively easy monetary policy and that's the recipe for markets to go higher and ignore the bad news," he added.