swifter economic recovery, investment banks said.
Germany, Britain and the Netherlands indicated strict COVID-19 curbs would last into early February and Italy said it would extend its state of emergency to the end of April. Japan also expanded a state of emergency in Tokyo, hurting the prospects of holding an already delayed Summer Olympics. Analysts’ earnings estimates for the first quarter did not reflect the worry either – Europe is seen reporting a whopping 40 per cent jump in profits, while the United States is forecast to see a 16 per cent rise.
“While additional stimulus could provide upside risks, rising COVID cases suggest a more tepid recovery from here.”
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