LIVE MARKETS-Europe Inc: a 'wait and see' reporting season

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EUROPE INC: A 'WAIT AND SEE' REPORTING SEASON

European companies are largely topping Q1 earnings expectations, but that's being overshadowed by a challenging outlook and widespread uncertainty over tariffs.

According to Morgan Stanley, with 71% of MSCI Europe's market cap having already reported, there's a robust 23% net beat ratio on EPS and a 7% beat on sales.

However, providing guidance is quite challenging for the region's companies that are grappling with no clarity on new U.S. import levies.

"Broadly, 'wait and see' appears to be a common approach on tariffs," writes MS, noting that many companies are just sticking to their guidance, with Airbus being a notable example.

The U.S. bank highlights DHL's remarks that many customers "just don't know whether things really come into effect and basically keep their current setup" and ultimately delay investment decisions.

(Danilo Masoni)

FOR TUESDAY'S OTHER LIVE MARKETS POSTS

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