European firms fare better than expected through early trade pain

Earnings for European firms have surpassed expectations, offering some market relief as MSCI Europe index companies report 3.8% earnings growth, significantly outpacing a projected decline. Meanwhile, sales growth remains ahead of estimates. However, experts caution that while first-quarter results are strong, guidance has been weak, and investor sentiment on capital expenditure is cautious due to ongoing tariffs affecting sectors like commodities and industrials.