The Glory of Low Expectations
Change of focus
Europe quietly delivered a much stronger week than the macro headlines would suggest. Roughly 47% of European companies beat expectations versus only 20% missing, while revisions breadth climbed to its strongest level in years. Macro data across Europe remained mixed, particularly in Germany where industrial production disappointed again, but markets seemed increasingly willing to focus on improving corporate execution rather than sluggish economic prints. Here are six "low expectations" charts on Europe.