European view: Looking beyond the short-term risks

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...