European Corporate Health: Navigating Tariff Turbulence
The future of European corporate health appears bleak as earnings forecasts have declined amidst U.S. tariff uncertainties. LSEG I/B/E/S data predicts a 0.2% decrease in second-quarter earnings for European companies. While some European automakers navigate the uncertainty, others like Norwegian and German firms anticipate declines.
European corporate health is under strain as earnings forecasts reveal a downturn amid ongoing U.S. tariff uncertainties, according to LSEG I/B/E/S data released on Tuesday. Analysts now predict an average 0.2% drop in second-quarter earnings for European firms, a stark contrast to the 0.6% increase expected just a week prior.
The erosion of company prospects follows U.S. President Donald Trump's announcement of "reciprocal" tariffs, which had initially projected a 9.1% earnings rise for the quarter. Revenue forecasts have likewise worsened, with expectations of a 3% decrease, surpassing last week's 2.2% drop prediction.
The EU is nearing a trade deal with the Trump administration, aiming for potential tariff exemptions. Meanwhile, the STOXX 600 index shows diversity, with some Irish and Polish firms excelling while Norwegian and German companies face downturns.
(With inputs from agencies.)
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