LONDON: Expectations for second- and third-quarter corporate profits are deteriorating further in Europe, despite a gradual easing across the continent of lockdowns aimed at curbing the coronavirus pandemic, Refinitiv data showed on Wednesday.
Companies listed on the pan-European STOXX 600 are now expected to report a decline of 48.4 per cent in second-quarter earnings, down from a drop of 46.7 per cent forecast the week before.
For the third quarter, analyst expectations are now set for a 35.3 per cent fall in earnings, versus 35.1 per cent a week ago.
Analysts believe the expected recovery from the recession will be gradual and the economy will not bounce back, let alone return to normal, before the first quarters of 2021.
The last three months of 2020 are expected to see STOXX 600 earnings fall by 16.5 per cent, before bouncing back respectively to 27.2 per cent and 53.1 per cent for the first two quarters of next year.
Before the pandemic, analysts had expected the first quarter of 2020 to bring an end to Europe's corporate recession that had lasted through 2019.