Outlook for European corporate profits worsens further

LONDON (Reuters) – Expectations for second- and third-quarter corporate profits are deteriorating further in Europe, even though economies are reopening fully after months of lockdowns, Refinitiv data showed on Tuesday.

Companies listed on the pan-European STOXX 600 are now expected to report a decline of 67.5% in second-quarter earnings, down from a drop of 58.3% forecast the week before.

For the third quarter, analyst expectations are now set for a 37% fall in earnings, versus 36.2% a week ago.

Energy, financials and consumer cyclicals are expected to report the biggest declines in profits, the data showed.

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