Company earnings was once a useful barometer as to a firm's European share price performance as more and more classes break up. Finding winners though in shares could be quite tough nowadays.
The positive outlook in current markets have started to entice many new investors who often conduct due diligence reviews on companies and hold on to shareholdings for a far longer period of time. This would put firms that overcome earnings projections at a better position compared to those that don't.
And for this year, the STOXX Europe 600 Index has risen 10% even if the first quarter revenues have showed more losers than winners in the market. Over half of the companies in the index have reported failing to meet revenues and profit forecasts.
Many of the gains in these industries are the result of central bank activities, such as a pledge coming from European Central Bank President Mario Draghi to shore up the Euro. This has helped downplay the current crisis and has also put money into stocks coming from other assets.
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