Europe Profit Upgrade Unchecked by Greece As Draghi Matters More
By Roxana Zega
When it comes to corporate earnings, European investors are more interested in what happens in Frankfurt than Athens.
Even as Greece dominated investor sentiment for months, estimates for European profit growth in 2015 have managed to rise — to 12 percent now from 10 percent in April, according to analyst projections compiled by Bloomberg.
They?re being boosted by optimism about the European Central Bank?s quantitative-easing program and its consequences, according to Bank J Safra Sarasin AG?s Gabriel Bartholdi.
?Central-bank liquidity measures are much more important for earnings than what happens in Greece,? Bartholdi, a strategist in Zurich, said by phone. ?Most indicators are still improving and create a good base for the economy and the recovery. A lower euro should boost exports. The environment looks very attractive.?
The Euro Stoxx 50 Index rebounded 12 percent through Monday from a five-month low as concern eased that Greece would leave the currency region. That?s led to a record 43 percent slump in a gauge tracking equity-price swings in the past eight days, signaling calmer markets for investors who turn their focus toward earnings.
The benchmark equity gauge slipped 0.2 percent at 9:59 a.m. in London.
ASML Holding NV kicked off the reporting season among Euro Stoxx 50 companies on a positive note. Europe?s largest semiconductor-equipment maker rallied 4.3 percent after it reported second-quarter revenue that beat projections and forecast a gain in the next three months.