Goldman Sachs strategists said that the European stock market is expected to record the strongest profit growth in the first half of the past three years. The team led by Oppenheimer pointed out that currently about 30% of the market capitalization constituents in the European STOXX 600 Index have announced second-quarter results. The strategist pointed out that the 12% increase in earnings over the previous year was mainly driven by the commodities sector. After excluding this sector, profit growth slowed to 6%, but “it is still a pretty strong growth pace.” The technology sector has had some of the strongest earnings surprises so far, with earnings per share exceeding expectations by an average of 7%; however, Asmack alone contributed most of the increase that exceeded expectations. The strategist said that judging from the relative stock price performance after the announcement of the results, the stock price of companies that exceeded expectations rose by an average of 2%, while the stock price of companies that did not meet expectations fell by an average of 3%.

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