(Finance) – The fourth quarter earnings season in Europe is about to begin, with 10% of companies expected to report results by the end of the month, with this number rising to 40% by mid-February. Sell-side analysts predict one Stoxx 600 annual EPS growth of 1% in Q4following 2% growth in Q3 and followed by expected 3% growth in Q1 this year. Analysts say so Bank of America (BofA) in a research on the topic.
It is expected that theenergy will be the main drag on the index’s earnings in Q4 (with the recent oil price rebound too late to have an impact), followed by discretionary consumer goods (amid concerns about weak demand for cars and luxury), while the telecommunications hey basic materials will be the main positive contributors.