LIVE MARKETS-Europe Inc earnings: "Risks to the downside"

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EUROPE INC EARNINGS: "RISKS TO THE DOWNSIDE"

The reporting season in Europe has kicked off with a big miss at luxury group LVMH just as analysts are slashing their estimates across the board to reflect tariff uncertainty.

The extreme deterioration in corporate mood from March is likely to offset the good momentum seen til February, says Deutsche Bank who anticipate possible downgrades further ahead.

"We expect equity markets to focus on FY guidance rather than Q1 earnings, providing a reality check on the damage the trade war has already done to corporate confidence and consumer demand," it writes in its earning season preview.

On top of that it expects the stronger euro to start weighing on European earnings starting from Q2, resulting it a cut to its 2025 STOXX earnings growth estimate to 4% from 6%.

"Risks are tilted to the downside, especially if the current EUR/USD levels were sustained. In that case, we estimate that FY earnings growth could decrease by another percentage point".

(Danilo Masoni)

EARLIER LIVE MARKETS POSTS

BARCLAYS RECOMMENDS LONG 5-YEAR US TREASURIES CLICK HERE

BOUNCING BACK CLICK HERE

EUROPE BEFORE THE BELL: LVMH EARNINGS WREST FOCUS FROM TARIFFS CLICK HERE

MORNING BID: TAXES AND TARIFFS ON THE MIND AS RELIEF RALLY LIMPS ALONG: CLICK HERE