LIVE MARKETS-Earnings misses punished by most in 20 years

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EARNINGS MISSES PUNISHED BY MOST IN 20 YEARS

European earnings season is well underway, with about 30% of the STOXX 600 market cap having now reported, according to Goldman Sachs, and results have generally been well received if companies have beaten expectations.

On average, about 2% have beaten expectations, GS writes, in line with the long-term average. Rewards for earnings beats have been in line with historical averages too.

But for those that have missed expectations, it's a different story.

"Misses have been heavily penalised," Goldman says.

"The average relative price reaction for companies reporting below expectations has been -2.4%: the most severe of the last 20 years."

(Samuel Indyk)

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