To find a quarter when European profits increased faster than American ones, you have to go back to the fall of 2023.
The European upswing is affecting share price reactions. The broad Stoxx Europe 600 index - which includes Swedish heavyweights such as Investor, AB Volvo and Atlas Copco - has outperformed the S&P 500 in New York so far this reporting season.
According to Violeta Todorova, an analyst at brokerage Leverage Shares, European stocks look attractive because of moderate valuations, positive earnings growth and less market concentration around a handful of mega-tech companies.
