New Delhi, March 16 -- A prolonged war and sustained high oil prices could increase risks for global financial markets, particularly for Wall Street earnings and the shadow banking sector, according to a report by BofA Securities.

The report noted that if the conflict continues for a longer period, risks in the shadow banking sector could rise, while the main risk to Wall Street may come through corporate earnings rather than inflation.

It stated, "if war long, then shadow banking risks mount, and sustained high oil price risk to Wall St is EPS not CPI".

It highlighted that consensus forecasts currently expect the S&P 500 companies to record earnings per share (EPS) growth of 17 per cent over the next 12 months.

However, sustained hig...