This punishment market will be hard on Europe’s earnings slip-ups

The market can be a cruel master. That is especially true when stocks are near record highs and concerns about the economy are growing. In Europe the Stoxx 600 index is hovering close to an all-time record set earlier this year. Expectations for earnings levels remain high, even as the economic outlook weakens. There is little room for disappointment come results time. Investors are already punishing slip-ups harshly.

The growing likelihood of a Donald Trump presidency is boosting the medium-term outlook, with the potential for tax cuts, deregulation and higher government spending. That combination is helping US stock markets outperform Europe. Earnings expectations reflect this divergence too. Profit margins in Europe are expected to come under some pressure as cyclical sectors such as luxury goods wilt. US margins, in contrast, are expected to continue expanding.

المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Labour could borrow more without UK bond market backlash, say investorsRelaxing fiscal rules unlikely to provoke a Liz Truss-style gilts crisis, according to fund managers
مصدر: FT - 🏆 113. / 51 اقرأ أكثر »

Why Big Investors Are Doubling Down Right Now on Oil & Gas StocksBuffett, Slim and Tepper are making major bets on energy companies such as Occidental, PBF and Energy Transfer LP
مصدر: OilandEnergy - 🏆 34. / 68 اقرأ أكثر »

Investors take companies to task over nature risksAlso in today’s newsletter, how attitudes on transition finance in private markets are evolving
مصدر: ftenergy - 🏆 47. / 63 اقرأ أكثر »