12 days ago
WTVB
By Joice AlvesLONDON (Reuters) – Europe’s upcoming corporate earnings season is likely to show whether the renewed optimism about the economy that has buoyed equities in recent weeks is grounded in reality. In a sign analysts were unprepared for such optimism, Citi’s economic surprise indicator for the euro zone jumped last week to its highest since July 2021. “Companies are telling us that it’s going to be harder to pass on rising costs to customers in 2023 as economic growth slows,” said Nigel Bolton, co-chief investment officer of BlackRock Fundamental Equities. Fourth-quarter earnings for STOXX 600 companies are forecast to have grown by 10.7% year-on-year, the slowest in two years, according to Refinitiv I/B/E/S data. Earnings are seen bouncing back to growth of 11.4% in the final quarter of the year.
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