Corporate Recession Becoming Increasingly Likely in Europe: Refinitiv

According to data released by Refinitiv, companies listed in European stock exchanges are expected to see their earnings decline by 1.9% in Q3 2019, slightly worse than the 1.8% decline forecast during the previous week. The ongoing trade war between the US and China are impacting businesses and reducing corporate profitability, driving down earnings as a result.

If profits decline in the present quarter, it would be the third consecutive quarter of decline in earnings, which would point towards a corporate recession in Europe. This news does not bode well for the Eurozone economy which has already been weakening over uncertainties in the trade war and Brexit.

On a slightly positive note, Refinitiv forecasts a slightly better performance for companies in the second quarter. Earnings in Q2 2019 are now estimated to decline by 2.4%, compared with a 2.6% decline estimated during the previous week. Revenues, meanwhile, remain constant, expected to rise by 3.2% during the second quarter of this year.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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