LONDON (Reuters) - Expectations for corporate profits in Europe have worsened sharply within a week as the spread of the coronavirus triggered fears the global economy could come to a standstill, Refinitiv’s latest data showed on Tuesday.
The pan-European STOXX 600 companies are now expected to post a 3.1% decline in Jan-March quarter profits, worsening from the 1.4% drop forecast last week.
It’s a sharp deterioration from the 5% jump seen in early February, according to I/B/E/S Refinitiv data.
Analysts expected Europe to end its corporate recession in the last quarter of 2019 but the supply-chain disruptions and demand hit caused by the virus have quashed those hopes.
Reporting by Julien Ponthus