{"id":130171,"date":"2018-07-16T09:55:38","date_gmt":"2018-07-16T13:55:38","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=130171"},"modified":"2018-07-16T07:06:42","modified_gmt":"2018-07-16T11:06:42","slug":"stoxx-europe-50-analysis-reporting-season-of-european-companies-continues","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/07\/stoxx-europe-50-analysis-reporting-season-of-european-companies-continues\/","title":{"rendered":"Stoxx Europe 50 Analysis – Reporting season of European companies continues"},"content":{"rendered":"
July 16, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

Reporting season of European companies continues<\/strong><\/p>\n

Corporate earnings reports season for the 2nd quarter of 2018 continues in the Eurozone. According to forecasts, the aggregate profit of companies from the Stoxx Europe 50 list will increase by 8%. Will EU50 prices<\/a> rise?<\/p><\/blockquote>\n

Market participants hope that Donald Trump\u2019s demands will be limited by the increase of European countries’ spending on NATO defense to 2% of GDP and will not touch the issues of mutual trade. In other words, there will be no increase in import duties for European goods following the example of the US-China trade war. Such an opinion may be a positive factor for quotations of companies from the EU. Let us also note that the EU50 dividend yield is 3.6% and it is traded with P\/E (capitalization\/earnings ratio) of 14.9. This is noticeably better than similar indicators of the US stock index S&P 500: dividend yield 2.4% and P\/E 22.2.<\/p>\n

\"EU50\"<\/p>\n

On the daily timeframe, EU50: D1<\/b> approached the upper boundary of the falling channel. It should be overcome before opening a buy position. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of the publication of positive reports by the European companies.<\/p>\n