European stocks are in the middle of a pivotal earnings week that can help cement this month’s advance, especially compared to US peers. Firms comprising about 21% of the Stoxx 600’s market cap are expected to report over the week. Analysts had cut estimates heading into the earnings season, meaning there’s room to beat a low bar. Regionally, the DAX may lead Western Europe’s profit growth this year, and today’s batch of reports supports that outperformance. Last year’s best-performing European stock, Siemens Energy (ENR GY), raised its cash flow outlook as estimates beat, sending the stock up +7.5%, while lab equipment maker Sartorius also posted a strong result, sending its share price surging up +11.5%.
- The emphatic bullish breakout by the German DAX is an encouraging read-through for the ASX, which is more correlated with European than US bourses.
MM is cautiously bullish on the German DAX
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