Europe's most recent earnings season set to surprise on the upside

Despite concerns in Greece, David Lambert, senior portfolio manager - European equities at RBC Global Asset Management, says key macro data from European companies has remained resilient

Europe and the US are 'out of phase' with each other in a number of cycles including the stimulus cycle, earnings revisions, and prevalent investment styles.  Europe is still only eight quarters into its current expansionary phase (US is over five years). In the early phases of recovery, we tend to see a move away from high quality growth names, into higher risk value stocks within the equity market. We have indeed seen this, but it has been exacerbated somewhat by a rise in bond yields which has seen investors move away from traditionally high yielding equity stocks and sectors. O...