Deutsche Bank: 25% growth in European corporate earnings will support European stock markets.

Deutsche Bank strategists say European corporate earnings in the third quarter may once again beat expectations, potentially serving as a short-term catalyst for the stock market. The research team led by Maximilian Uleer forecasts that European corporate profit growth could reach 25%, about 5 percentage points above the market consensus. The team believes inflation is a tailwind rather than a shock, as companies can pass on rising input costs to product selling prices, thereby boosting revenue and profit margins. Excluding the energy sector, earnings growth is expected to be 15%.