So far, global earnings are just good enough to feel disappointing

Global companies face challenges from higher interest rates and China's economic weakness, impacting earnings and consumer sentiment worldwide.

Companies worldwide are lowering full-year sales and profit guidance as higher interest rates and weakness in China's economy hurt global consumer sentiment, taking the shine off earnings growth in the latest quarter.

A number of high-profile companies have underwhelmed investors, including McDonald's, automakers Nissan and Tesla, and consumer giants Nestle and Diageo. With roughly 40% of U.S. and European companies reporting results, earnings have come in about as expected - but after the strong run by world equity markets, 'about as expected' seems like a disappointment.

"A very mixed season so far in terms of results," said Brian Mulberry, client portfolio manager at Zacks Investment Management. "We're starting to see the pressure that the higher-for-longer interest rate environment is putting on companies and their ability to continue to drive earnings and revenue growth."

The earnings season will get a jolt this week from the globe's tech giants, including Apple, Microsoft and Samsung Electronics, Japan's Toyota Motor, oil titans Exxon Mobil and Shell and European retailers L'Oreal and Adidas .

Global companies have zeroed in on two issues hitting their bottom lines: higher interest rates that are pinching consumer spending, and underperformance in China's economy, the second-largest in the world.

McDonald's reported its first drop in sales worldwide in 13 quarters, citing weakness in China's economy. Companies including Unilever, Visa and Aston Martin also noted weakness in China, and analysts have warned that demand in the Asian giant is unlikely to reverse while a protracted property downturn and job insecurity weigh on consumers.

"The Chinese... are not willing to spend because they are afraid about the future," said Stefan-Guenter Bauknecht, portfolio manager at DWS. Until growth improves in China, the country will be "the weakest of the big regions, or at least the most far behind expectation," he said.