Analysis: European earnings face a low bar, but investor patience wears thin

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European stocks may manage to emerge from this earnings season in the black, despite China's faltering economy and persistent global inflation, as expectations are so low that investors are likely to warmly welcome any positive surprises.

has reported earnings and so far less than half of them have beaten expectations, fewer than in a typical quarter. Not only that, shareholders are severely punishing any misses in a sign the market's tolerance for meagre results is running low.

Since then, Chinese growth has lost momentum, which has raised concern how European companies exposed to the world's second-biggest economy would fare while already dealing with persistent global price pressures and rising borrowing costs.

 

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