Europe Weekly Kickstart

European equity markets face a high bar for the upcoming earnings season with growth forecasts heavily skewed by the commodity sector. Analysts remain generally positive given resilient macro data, though they are monitoring risks related to input cost inflation and potential energy shocks.

Key Takeaways

• 1.European markets head into earnings season with high bars, with consensus expecting 11% y/y earnings growth in 1H26, though this drops to 6% excluding commodities.
• 2.Earnings growth for 2026 is forecast at 10% for the STOXX 600, driven largely by commodity producers, with a normalization expected for 2027.
• 3.Macro environment remains supportive with resilient manufacturing PMIs and tracking estimates, though investors are focused on energy price transmission and potential impacts of the Iran conflict.

Table of Contents

• 1H/2Q-26 Earnings Preview: The Backdrop Is Supportive, the Bar Is High
• Snapshot of Global Performance Across Assets - Total Returns (€)
• Global Strategy Views: Indices and Asset Classes
• Earnings Expectations and Revisions
• STOXX Europe 600 Supersectors
• Style Performance
• Thematic Baskets – Price performance
• Sub-Sector Performance
• Thematic Baskets
• Thematic Basket Valuation
• Europe Sector Valuation
• European Indices Valuation
• Long-Term Valuation – Europe
• Economics

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