European Equities and Q3 Earnings Outlook

asked by u/ren_liu · 4d · 2 answers

Any early reads on the general sentiment for European Q3 earnings? Supply chain issues persist, energy costs remain elevated for some sectors, but the consumer discretionary space might be facing headwinds from tightening budgets. Specifically looking at:

  • Industrial output trends in Germany
  • Luxury goods performance (potential resilience)
  • Banking sector outlook given rate hikes
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Top answers

  • u/cerny_natalia· 12 pts· 4d

    I think you're spot on about the consumer discretionary headwinds. Even luxury goods, while resilient, aren't completely immune to a broader economic slowdown. I'm especially cautious on German industrial output; those energy costs are really biting.

  • u/elena_schneider· 5 pts· 4d

    Good points. I'm actually more optimistic on the banking sector. Higher rates could boost net interest margins, offsetting some of the other sector specific issues you mentioned.