2Q 2020 corporate earnings reporting season kicks off
This week, the 2Q 2020 corporate earnings reporting season kicks off in the United States and in Europe. Analysts are expecting the sharpest contraction in profits since the Great Recession (-43% in the US and -55% in Europe), but these forecasts are likely to prove conservative, as they have not been revised upwards, if not only marginally, in light of the positive signals that followed the reopening of economic activity. The markets, however, supported by the massive amounts of liquidity injected by the central banks, focused on the post-lockdown reacceleration, and after scoring strong gains in 2Q, are now experiencing a consolidation phase, in waiting for confirmative evidence on the intensity of the recovery, and for companies’ future earnings outlooks.
Read Eurizon Macro Research analysis
Previews financial reports
Macroeconomic data: 1Q 2020
The 1Q reporting season
The US fiscal policy
The Fed and unlimited credit, a necessary condition for the economy to recover
The surprise after the disappointment: the ECB slings out its bazooka
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