Many optimistic investors were attempting to shrug off the European economic slowdown several months ago, including the ECB, claiming a rebound was just around the corner in 2019, the data is here to refute that claim.
Even outlook for Wall Street earnings has deteriorated significantly in recent months, data shows, raising the risk that companies in the United States may slip into recession before its economy does – with Europe close behind
Analysts on average expect the S&P 500’s first-quarter earnings per share to drop 0.3 percent year-on-year.That’s a big drop from the 8.2 percent rise expected as recently as October and would mark the first contraction in U.S. company earnings in three years.Analysts have also made deep cuts to forecasts for the rest of the year. They still expect growth in the remaining three quarters, meaning Wall Street would avoid a technical recession typically defined as a fall in two consecutive quarters. But only just, as the lowered growth forecasts are meager.
The full-year estimate stands at just 4.2 percent now, down more than half from 10.2 percent in October.It’s pretty gloomy on the other side of the Atlantic too. Analysts anticipate barely any growth among European companies listed on the STOXX 600 at the slowest in 18 months, data shows.