HSBC strategists pointed out that European companies had the weakest first quarter of 3 years and that the above-expected results in the balance sheets were 49 percent, well below the long-term average of 55 percent.
European companies are having their weakest balance sheet season since the first quarter of 2020, according to HSBC strategists.
The team, led by Edward Stanford, says that 49 percent of balance sheets announced so far exceeded expectations, well below the long-term average of 55 percent.
The team points out that the growth per share was 7.7 percent, but the median expectation was minus 11.4 percent, so more disappointment will come.
On the other hand, in the information note passed by HSBC, it was emphasized that companies that fell short of expectations performed better on a daily basis, indicating that this situation indicates that future bad news is included in the price.