Summary:
European stocks hit record highs this month, driven by companies surpassing Q4 revenue expectations, but US tariffs dominate executives' concerns.
European stocks have hit record highs this month, as companies have beat Q4 revenue expectations, but the topic that dominates the conversation among executives in the region is US tariffs.
According to LSEG I/B/E/S, earnings are expected to have increased 5.4% from the same period a year ago, while sales are forecast to have risen 4.7%, the highest quarterly growth rate since Q4 2022.
German's new conservative leader Friedrich Merz has to form a coalition government and it is not yet clear whether that will include one or two partners, with the latter likely to take more time and horse trading.
The uncertainty comes as EU leaders are drawing up a plan to hold an extraordinary summit next month to discuss additional support for Ukraine and how to pay for European defence needs.
Private-sector business activity in France unexpectedly slumped to its lowest level since 2023 in February on a prolonged political crisis, which could prompt the ECB to speed up interest-rate cuts.
PM Francois Bayrou's government remains vulnerable with no clear majority in parliament with tensions with opposition parties likely to return in the coming months in terms of legislation.
The Stoxx 50 looks neutral consolidating below its peak. The yearly uptrend remains interrupted as long as 5,360 is respected.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The US dollar hovered near a five-month low against the euro and other majors on Tuesday amid concerns over rising global trade tensions.
2025-03-18
Gold steadied below $3,000 after last week’s record high. Goldman Sachs sees upside risk to its $3,100 year-end forecast.
2025-03-17
The Hang Seng Index rose Friday but faces a weekly loss, as Chinese tech stocks outpace US peers, a trend likely to continue.
2025-03-14
