Outlook for Europe’s Industrial Firms Dimmed by War and Currency

Europe’s industrial firms are dealing with challenges linked to the Iran war, tariff threats and currency headwinds, clouding the outlook for a sector that has been banking on the artificial intelligence rush.

Half of the MSCI Europe Industrials index fell short of earnings-per-share expectations in the first quarter, the highest proportion of misses of any sector, according to Bloomberg Intelligence data. Industrials’ earnings slipped 3.8%, a steeper decline than the 0.3% drop expected, and it was one of only two sectors to deliver results below estimates.