From Investing.com: 2024-07-26 07:46:01

Barclays strategists noted the Q2 earnings season has been underwhelming but not disastrous. Europe’s EPS beats have decreased, with companies adopting a cautious stance on the economy. Share price reactions in Europe have been notably negative, especially for missing estimates in Cyclical sectors.

While Europe’s market seems more risk-off, the US market is experiencing a risk-on rotation with small caps gaining for the week. As indices approach oversold levels, the US data remains strong, and there is potential for equities to stabilize with the help of dip buyers stepping in.

Q2 EPS growth is at 2% in Europe and 5% in the US year-over-year, marking positive territory for both regions since Q3 2022. Despite EPS beat declines and margin improvements in Europe, the US market is showing positive trends in these aspects, according to Barclays analysts.



Read more at Investing.com: Not impressive, but not a disaster either By Investing.com