China’s Export-Led Recovery Clouds European Stocks’ Earnings Outlook

The Euronext NV stock exchange in Paris.Photographer: Benjamin Girette/Bloomberg

China’s emergence as a tougher competitor and weaker customer is clouding the outlook for European stocks this earnings season.

Profit warnings from an array of sectors aren’t just a symptom of waning demand from Chinese consumers — they also point to increased competition from the nation’s companies, as it floods the world with its own goods.