European companies are now guiding earnings expectations upwards

European earnings

The expected fall of the euro against the dollar should help the recovery in corporate earnings. The major drawback that can affect this possibility is that flows are not accompanying and global investors have reduced their positions in European stock ETFs  by € 2,000 million of net outflows.


“If we compare previous periods with similar negative flows, we see that they coincided with key support areas (except in 2008) and to buy in the market with over € 1,000 million outflows had a hit ratio of 92% in 12 months, higher than any other scenarios that we consider,” explain Morgan Stanley experts.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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