LIVE MARKETS-Europe Inc earnings: energy, banks do the heavy lifting

ReutersApr 9, 2026 12:19 PM

STOXX 600 down 0.5%
Trump warns of escalation if peace process fails
Transit through Strait of Hormuz remains restricted
Brent crude oil up 3%

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EUROPE INC EARNINGS: ENERGY, BANKS DO THE HEAVY LIFTING

Europe's earnings season is about to kick off, with nearly half of STOXX 600 .STOXX reporting by the end of the month. Sell-side consensus looks for earnings per share to rise 3% in the first quarter, easing slightly from Q4 but still positive.

BofA Global Research says growth remains narrowly driven by energy and financials. Excluding those two sectors, EPS is expected to drop by 3%, unchanged from last quarter and underlining the fragility of the wider earnings picture.

Energy has been the clear winner since the Iran conflict began, helped by higher oil and gas prices and driving overall STOXX EPS forecasts for Q1 and Q2 up by 2% and 7% respectively.

Estimates for cyclicals and defensives have slipped, BofA notes, while at the index level, however, forecasts have been unusually stable, suggesting analysts are waiting for clarity.

The bigger risk may lie ahead.

BofA strategists warn that their macro assumptions imply 8% downside for the forward EPS by mid-year: "We are concerned that an oil-driven increase in inflation puts downward pressure on final demand by squeezing real purchasing power".

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

WHY STOCKS MAY BEAT BONDS IN A POST-WAR WORLD CLICK HERE

CRUDE REALITY: TRADERS WANT "OIL NOW!" CLICK HERE

THE FED'S NEXT INPUT: U.S. INFLATION CLICK HERE

INVESTMENT BANKS EYE SOLID Q1 SEASON, BUT CAUTION CREEPS IN CLICK HERE

EUROPEAN SHARES GIVE BACK SOME GAINS ON FRAGILE CEASEFIRE CLICK HERE

EUROPE BEFORE THE BELL: FUTURES MIXED AFTER HUGE JUMP ON IRAN TRUCE CLICK HERE

THERE'S A GULF BETWEEN MARKET HOPES AND REALITY CLICK HERE

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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