Samuel Indyk and Danilo by Mason
London (Reuters) -Europe Inc. US President Donald Trump sparks the spark of tariff policy to earn a saving in the first quarter, but despite the reconciliation of new mint trade, investors have still faced unscathed fog.
According to LSEG I / B / E / s, the first quarter earnings are expected to celebrate the fourth place of growth above 1 year before the same quarter. Earnings are expected to increase by 7.3%, except for the energy sector.
The impact of the uncertainty of Trump tariffs and macroeconomists, some companies warned of strong euros and income. The cyclic parts of the market, the bank gains remained healthy.
Here are five button takeaways:
Uncertainty prevails
Trump’s tariff plans have dropped a shadow on earnings and companies, so it reacted to protecting or pulling the leadership as he left a strong start relative to management.
“We have such uncertainties in the last time that the Covid has been in 2020 when the coviet begins,” said Magesh Kumar Chandrasecaran, Barclays in Barclays.
“This was the most obvious or uncertain, saving season from the point of view.”
Despite the first quarter of the vulnerability – 60% of companies were aggressively cut in the last two months compared to about 54% of the companies.
“There will be so hard to make a profit in the first quarter because of the year, because the end of the quarter,” Kevin Thozet, member of the investment committee in Carmigac.
Boredoms are punished most in ten years
As in the last quarters, earnings, gains were fined by the market, because the expectations were aimed at the reporting season.
According to Goldman Sachs, the average relative price reaction for the following companies reported the following was a 2% discount for the last 10 years. Rewards for gains remain in accordance with the average.
“Probably because they think that some of the number of numbers in Q1 are, they are not sure what to do in Q2,” Goldman Sachs Asset Management has been reportedly operating in the fundamental capital.
“Thus, although the winning expectations were flown, the market still believed that they could beat these numbers. This was very difficult for these missions.”
The euro rally adds to headlines
Only the corporations were not worried about the tariffs, but the unexpected power of the euro was alarmed because the investors killed dollar assets after the Tariff tariff.
A single currency increased by about 10% against the dollar since Novula, and even if the US / Chinese tariff break is slightly back.
This is this problem, taking into account about 60% of income for companies in the Europe Stoxx 600 index.
“This is a problem for exporters. When the tariffs and a stronger currency,” Barclays “Chandrasecaran said.
“We came to the export-oriented part of the market,” We came to the excitement expectations. “
Companies that flagged as a potential title ahead of foreign exchange movements include SAP, Munich Re, Bayer, Prysmian, Unilever and L’Oreal.
Banks were not released
Bank gains were most commonly spread to market volatility around US tariffs. He defeated many lending expectations and clung to 2025 forecasts – a clear departure from the character.
The interest rates were pressured by pressure, their latest updates showed sustainability in the face of global trade and macro uncertainty. UBS, about 90% of banks, 90% of banks defeated market consensus, managed with strong income performances.
The sector is in charge of cheap trade based on various dimensions, and even after an increase of 28% this year, the sector remains in favor of investors with high payments and stronger balance sheets.
According to Bofan’s European Fund Manager, this year, this month, the most weighted banks received their places as the most weighted sector.
“Bank numbers are all very strong,” said Carlo Franchini, head of institutional customers in Banca Idrigest.
Energy profit drag
The seven of the 10 main sectors watched by LSEG I / B / E / S, the energy increase in profit compared to the first quarter of 2024, but the energy is expected to report up to 28% of the same period.
“There is a very open connection between profitability and oil prices and the price of oil has been made.”
“It produces two things function, lower economic activity and OPEC more than expected.”
The price of oil was slightly lower than the price of four years, the concerns about the demand after Trump’s tariffs, but as trading tensions were taken.
(Shamuel notified by Indyk and Danilo Masoni. Adjustment by Amanda Cooper and Mark Potter)
