Strategists Now See Virtually No Europe Stock Gains in 2016
- Newest forecasts see weakest year since 2011 for region
- Earnings won't be as strong as firms expected, economist says
Reevaluating Equity Premiums on Central Bank Moves
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Strategists have slashed expectations for European stocks, painting the gloomiest annual outlook in five years.
Hit by one of the weakest earnings seasons in at least nine years, combined with waning faith in central banks, the Euro Stoxx 50 Index is expected to advance 1 percent for all of 2016. Only a few months ago, those same strategists were calling a 12 percent rally. The most dramatic about-face: Societe Generale SA, which cut its estimate from a 22 percent surge to a 0.5 percent decline.