- Q2 look earnings look flat as well, however the number of surprises have outnumbered the disappointments 2 to 1.
- Technology, Healthcare and Media are showing the largest downgrades, while the bright sectors are autos and chemicals.
- Profit warnings have slowed considerably this month after a significant run-up from the beginning of the year.
- World growth seems to better insulated from the slower activity in the US
- Country level Germany and Finland look strong
- Valuations look a little richer in Europe however still 3 points below its 10-yr average.
In the Numbers
- DJ STOXX 600 2007 EPS growth rate is 8% compared to 15.3% last year
Best – Weekly Performance (1 week EPS 07 revisions %)
DJ Stoxx / Insurance Bench 0.5%
DJ Stoxx / Technology Bench 0.3%
DJ Stoxx / Financial Services Bench 0.2%
Worst – Weekly Performance (1 week EPS 07 revisions %)
DJ Stoxx / Retail Bench -0.6%
DJ Stoxx / Health Care Bench -0.5%
DJ Stoxx / Personal & Household Goods Bench -0.5%