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The European corporate outlook continues improving as earnings season gains steam

The latest LSEG 'I/B/E/S' data on Wednesday showed that estimates for blue-chip European companies have?improved. Soaring energy sector?profits will help a deliver the best growth in over three years.

According to a data set based on 77 company results and market expectations for those who have not yet reported, companies on Europe's benchmark STOXX 600 Index are expected to post earnings growth of 17.3% during the second quarter.

The aggregate growth rate is 7.2%, excluding the estimated 122.6% growth rate for the energy sector.

The blue-chips in Europe are expected to grow by 11.5%. This is their highest rate since the final quarter of 2022. They have finally broken a 13-quarter streak of negative growth or flat growth. TotalEnergies, Repsol and Franco-Italian?STMicroelectronics saw their shares rise on Thursday after the market greeted positively their second-quarter results.

Investors are also closely watching the STOXX index next week as the majority of the STOXX companies -- including Europe's largest banks, industrials, and car manufacturers -- will be reporting their results. (Reporting and editing by Milla Nissi-Prussak, Javi West Larranaga)

(source: Reuters)