Goldman Sachs Says European Stocks Not Cheap As Well as Riskier

As Europe’s first earnings season of the year gets underway, Goldman Sachs has warned that European equity valuations no longer look cheap and that short-term risks are increasing.

In a note published Monday, Goldman analysts led by chief global equity strategist Peter Oppenheimer said they still believed equities in the region were on track to trend higher – albeit at a lower pace than last year.
But they stressed that in the short term, much depended on company results. Over the next five weeks, over 80 percent of companies in the STOXX Europe 600 index are due to report annual results, and the analysts highlighted that earnings consensus estimates had come down significantly since the end of the third-quarter earnings season.

CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza