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Goldman Sachs cuts Europe Inc's earnings forecasts, trims Stoxx 600 target
[LONDON] Goldman Sachs sees Europe's Stoxx 600 falling more than five per cent over the next three months as the regional economy and corporate earnings suffer a post-Brexit slowdown.
Goldman sees the Stoxx 600 falling to 300 points over the next three months before staging a slight recovery to 315 by the end of the year.
The index was down 2.2 per cent at 315.08 points by 0841 GMT.
The US bank now sees European earnings per share contracting 5 per cent in 2016, compared with their earlier forecast for a decline of 2 per cent.
European companies, on aggregate, have not shown annual growth since 2011, the broker notes.
Strategists at Goldman Sachs recommend investors cut exposure to insurance and travel sectors in Europe. They upgraded the Food and Beverage sector to an "overweight".
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