Continuing our countdown to Christmas, Rory Bateman discusses near-term risks facing European equity investors and assesses the longer-term outlook for earnings and valuations.
While we are encouraged by the European equity market recovery since the UK's EU referendum, the total return for the market is still down 4% in euro terms this year at the time of writing.* European corporate earnings have fallen short Once again, the key driver has been disappointing earnings relative to expectations, particularly in financials and energy. Earnings have been downgraded from +10% in January and we expect will finish the year at -4%, therefore we have actually seen a modest re-rating of the market so far this year. If we strip out energy and financials the picture i...
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