European second-quarter corporate profit outlook dips
European companies are expected to report growth of 4.6% in second-quarter earnings, on average, according to LSEG I/B/E/S data. That is slightly below the 4.8% rise analysts had expected a week ago.
Since the European Union struck a framework deal with the United States in July and the U.S. and China extended their tariff truce for another 90 days last week, market sentiment has been steadily improving.
Before July, forecasts for Europe-wide STOXX 600 (.STOXX), opens new tab company earnings had steadily worsened since U.S. President Donald Trump announced plans for "reciprocal" tariffs in February. Analysts had expected second-quarter earnings to grow 9.1% year-on-year right before the announcement, according to the data.
The consensus for revenue also continued to worsen slightly, the LSEG report showed. Analysts now expecting a 1.5% fall, compared with a 1.3% drop expected last week.
That compares with a 3.0% increase in earnings and a 0.8% drop in revenues a year ago.
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