Yesterday Citi Research published a new strategy report for the European markets. It has a surprisingly optimistic tones, writes Finansavisen.
In the previous version of the report last fall, there was a darker scenario especially for Europe. Improvement in industrialized countries appears to be synchronous, and in a positive direction, according to the report.
In its macro report for Europe, Citi Research recently raised growth projections for Europe and the eurozone. Citi also sees clear signs of stronger credit dynamics in all Euro zone countries.
Despite obvious political danger signals with the rise of right wing, earnings estimates were also revised in the report.
For Europe Citi sees double-digit percentage growth in earnings. This projection are based on condition that Marine Le Pen does not win the French presidential election.
Norway Tops Earning Expectation
Norway tops the list of earnings estimates for 2017, with an expected improvement of 36.2 percent.
Citi believes that more significant downside factors are beginning to fade. For example, the balance of payments in a number of emerging economies is in the process of improving, and fear of new shocks in commodity markets is reduced.
For Europe, it also means a lot that banks’ risk situation is not very dramatic, says Citi.