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As of Feb. 29 with 313 companies having reported, 50.2% posted a beat, according to a CNBC analysis of FactSet data. This was the smallest percentage of beats — thus the worst earnings season — since the first quarter of 2020 when the pandemic first hit European firms. Share buyback bonanzaSharon Bell, a senior European strategist at Goldman Sachs, told CNBC that she had noticed a new trend for European corporates during this earnings season. "What you have seen is a lot of companies announcing buybacks," she told CNBC's "Squawk Box Europe" Tuesday. "It is absolutely huge, you've never really seen this before in 20, 30 years, European companies pay dividends, they don't do buybacks," she said.
Persons: , Edward Stanford, Philippe Ferreira, Kepler Cheuvreux, Sharon Bell, Goldman Sachs, CNBC's, you've, Bell, Ferreira Organizations: CNBC, HSBC, L'Oreal, European Central Bank, Shell, Deutsche Bank, Novo Nordisk, UBS Locations: Triomphe, France, Europe, China, Ukraine, European
HSBC identified nine "unloved stocks" listed on the London Stock Exchange that it says could be poised to surge due to several factors. The investment bank said U.K. markets have started to outperform other global indexes for the first time this year — since the release of the U.K.'s June inflation data on July 18. While the bank's strategists retain their underweight view on the U.K. market overall, they highlighted that London-listed stocks are "unambiguously cheap" on a valuation basis. The bank said the above stocks are FTSE 350 constituents with bottom-quartile consensus ratings indicating a sell or underweight rating. "By definition these screens are not relevant to everyone and should be viewed as a basis for further investigation," the HSBC strategists added in a note to clients on Aug. 15.
Persons: Edward Stanford, Hargreaves, — CNBC's Michael Bloom Organizations: HSBC, London Stock Exchange, of England, FTSE, SPX, HSBC FX, Pennon Group, Unilever
SummarySummary Companies Banks fall as fears of a banking crisis spikeEnergy down tracking lower oil pricesUK Feb retail sales rise unexpectedlyFTSE 100 down 1.4%, FTSE 250 off 1.0%March 24 (Reuters) - London stocks fell on Friday, dragged by energy shares that tracked oil prices lower, while banks extended declines at the end of a turbulent week as fears of a global banking crisis lingered. The blue-chip FTSE 100 (.FTSE) fell 1.4%, extending losses after a near 1% drop on Thursday. British banks (.FTNMX301010) lost 2.7%, falling for a third straight session, joining their European peers in Friday's slide. Energy majors Shell (SHEL.L) and BP (BP.L) fell 2.5% and 2.5%, respectively, dragging the broader energy sector (.FTNMX601010) down 2.5%, as oil prices extended losses on worries about a potential oversupply. Reporting by Shashwat Chauhan in Bengaluru; Editing by Subhranshu Sahu and Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.
Banks (.SX7P) accounted for nearly 16% of the STOXX 600 index (.STOXX) and have benefited from the high-rate environment, gaining nearly 20% to hit their highest in almost five years. In contrast, 35% of the S&P 500 (.SPX), the world's largest index by market value, are technology companies. Tech stocks (.SPLRCT) on the index have gained just 9% this year as rising rates make future profits for tech companies less valuable. CHEAPER IN EUROPEOn the valuation front too, the European stock market is much cheaper than the U.S. The STOXX 600 trades at about 13 times its 12-month forward price-to-earnings ratio, while the S&P 500 trades at some 18 times.
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