The Party Is Over

Europe: Back in black

The European spring in equity markets and the economy might have come to an abrupt end and Europe might very well be going back to what it does the best - disappoint and underperform. Today Goldman slashes earnings forecast and sees a significant fall in EPS for 2025. Let's examine if Europe will go back to black for real.

GS: "We now expect SXXP EPS to fall 7% in 2025 (from +2% before) and be flat in 2026 (from +4% before). The economic growth downgrades from our economists account for 5pp of the negative revision to our 2025 forecast, and lower oil prices as well as a stronger Euro account for 2pp each."