Istanbul, August 22 (HNA) – It was emphasised that companies listed on European stock exchanges are defying global shocks with strong profit growth.
According to investment bank Goldman Sachs’ 20 August research report titled “European Equities Defy Global Shocks with Strong Earnings Growth”, earnings per share in the STOXX Europe 600 index rose by an estimated 14 per cent in the first half of 2026 and are expected to increase by 15 per cent for the full year.
The report states that inflows into European equities, led by foreign investors, are at their highest level since 2021. According to Goldman Sachs Research, whilst companies are recovering from the effects of the global energy shock and boosting their profitability at a robust pace, investors purchased European equities at their highest level in five years during the first half of 2026.
Robust European economies, earnings in the energy sector and major thematic shifts—such as spending on technology, energy, defence and infrastructure—are supporting European equities.
According to Sharon Bell, senior European equity strategist at Goldman Sachs Research, the strong inflows into European equities in the first half were driven by foreign investors and were most likely driven by a desire for diversification.
Bell noted that this performance demonstrated that the market’s perception of Europe as a region hampered by weak profit growth is more of a myth than reality. Bell wrote, “The widespread narrative that Europe is struggling to generate earnings growth is increasingly at odds with the data,” and added:
“Earnings per share growth in the first half is running at its strongest pace in three years, and is occurring despite a renewed energy supply shock.”