Morgan Stanley Sees More Downgrades to European Profits: Chart

Morgan Stanley equity strategists see further downside to European earnings estimates. The bank projects that profits at Stoxx Europe 600 Index companies will slide 5 percent this year because of weak global growth, headwinds from the commodity and financial sectors and evaporating currency tailwinds. That’s more bearish than the average analyst forecast of 2.2 percent, which has already been cut from 8.2 percent six months ago.