Data Source: I/B/E/S data from Refinitiv
We’ve been covering for weeks that while pessimism was at an extreme on European equities (predominantly due to German Manufacturing/Exports), 2020 Earnings Estimates were holding in strong. See our note from Sept 12:
That thesis was confirmed this week. Not only are France and Germany showing “green shoots”, but forward estimates for Euro Stoxx 600 continue to imply ~double digit earnings growth for the region in 2020 (see featured table above).
In this morning’s reads we highlighted two articles (one outlining France’s economic reform program showing early results and the second showing a rebound in German manufacturing). You can find them here:
Stoxx 600 estimates (following 3 quarters of negative growth) are expected to be:
Q1 2020: +12.3%
Q2 2020: +4.4%
Q3 2020: +13.4%
Q4 2020: +9.8%
This is not how most institutions are currently positioned.
