European Stocks Struggle as Earnings Season Begins
European stocks are set to end the week with their first weekly loss in six, as investors assess the start of the earnings season. The Stoxx Europe 600 Index dropped 0.3% on Friday, with the benchmark on track for a 0.7% decline for the week.
Earnings Season Kicks Off
The earnings season kicked off in Europe this week, with investors closely watching the results of companies such as Unilever, Nestle, and Novartis. The results of these companies will be closely watched as a gauge of the health of the European economy.
The earnings season is expected to be a key driver of stock prices in the coming weeks. Analysts are expecting earnings to be strong, with the consensus estimate for the Stoxx 600 companies expecting earnings to grow by 10.3% in the first quarter.
Market Volatility
The market has been volatile in recent weeks, with investors uncertain about the outlook for the global economy. The European Central Bank has been cautious in its outlook, warning that the recovery could be slower than expected.
The ECB has also warned that the recovery could be uneven, with some countries recovering faster than others. This has led to increased volatility in the markets, as investors try to assess the outlook for different countries.
Political Uncertainty
Political uncertainty has also been a factor in the markets, with the upcoming French presidential election and the Brexit negotiations both creating uncertainty. The French election is expected to be a close race, with the outcome uncertain.
The Brexit negotiations have also been a source of uncertainty, with the UK and EU yet to reach an agreement on the terms of the UK’s departure from the EU. This has led to increased volatility in the markets, as investors try to assess the potential impact of the Brexit negotiations.
Outlook for European Stocks
The outlook for European stocks is uncertain, with the earnings season and political uncertainty both creating uncertainty. Investors will be closely watching the results of the earnings season, as well as the outcome of the French election and the Brexit negotiations.
The market is likely to remain volatile in the coming weeks, as investors try to assess the outlook for the global economy. The earnings season is expected to be a key driver of stock prices, with the consensus estimate for the Stoxx 600 companies expecting earnings to grow by 10.3% in the first quarter.
Overall, the outlook for European stocks is uncertain, with the earnings season and political uncertainty both creating uncertainty. Investors will be closely watching the results of the earnings season, as well as the outcome of the French election and the Brexit negotiations.