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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.