A fairly indiscriminate rally since November petered out in February with investors becoming more discerning about the assets they want to hold. Why this change in mood? Political, economic and corporate considerations have played their part.
The earnings season in Europe rather ran out of steam with around 51% of companies having beaten earnings estimates compared to the US where it was around 71%. This lack of earnings surprises was paralleled by a lack of growth. On average European companies saw their fourth quarter earnings shrink on a year-on- year basis, sales were a bit more positive.
Full article – Market Perspective – February – Discerning Returns – 4 March 2013 (PDF)
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