Eurozone's recovery accelerating, but earnings growth lags

London

FALLING short on earnings growth has become so typical in Europe that equity investors aren't quite buying the recovery yet.

A rally in the euro has dented expectations for the third quarter, leaving a lower bar to beat at a time when the region's accelerating economic recovery bodes well for its companies, strategists say. Projections for a 6.3 per cent increase in profits - half the rate predicted a few months ago - will be easily surpassed, said JPMorgan Chase & Co.