Forecasts for corporate earnings growth in Europe and leading emerging markets are being scaled back by analysts.
Brazil, Russia, India and China as well as much of Europe have all suffered more analyst downgrades to profit estimates than upgrades in the three months until February, according to Thomson Reuters data used by JPMorgan Asset Management.
The US, Japan and Germany are still experiencing positive earnings revisions as more analysts increase their forecasts than cut them, the Financial Times reports.
However, the ratio of upgrades to downgrades has slipped from peaks last year.
“Globally revisions are turning downwards. That is not normally a good short-term signal for equities,” said Andreas Utermann, chief investment officer of RCM.
Royal Mail cuts 3,500 job cuts and admits share scheme ‘worthless’
Royal Mail has told workers that its employee share scheme will be virtually worthless when it matures next year, dashing hopes of a windfall for staff, the Guardian reports.
Having carried out a valuation of the scheme, new chief executive Moya Greene has blamed the group's financial position and lower than expected cost savings. The maximum payout would have been £3,000 but the scheme now seems unlikely to pay anything.
Former chairman Allan Leighton set up the share scheme along with former chief executive Adam Crozier in 2007 to give staff an incentive to boost productivity and compete with private sector rivals.
Eurozone agrees €700bn bailout scheme
The European Stability Mechanism will have €80bn of paid-in capital and €620bn which will have to be made available if a receipient country becomes unable to pay its loans, the Times reports.