European Q2 corporate profits may drop 0.3% — LSEG

LSEG's latest forecasts show slight improvement for European businesses despite ongoing global trade uncertainty. The data suggests EU companies may see just a 0.3% profit drop in the second quarter. Earlier, analysts expected a 0.7% decline.

The situation has been deteriorating since February. That's when US President Donald Trump announced plans to impose reciprocal tariffs on Eurozone goods. At the time, LSEG analysts expected second-quarter earnings to increase 9.1% year-on-year. Revenue forecasts keep getting worse. Experts now predict a 3.1% drop, slightly deeper than last week's 3.0% estimate.

The upcoming earnings season will clearly show how Trump's tariff threats are affecting European firms. Many of them are already taking steps to reduce risks.

Stellantis says duties have already cost them 300 million euros ($352 million). Meanwhile, AstraZeneca plans to invest $50 billion expanding in the US by 2030.