No Place to Hide: Investors to Trawl Europe’s Q3 Earnings for Inflation Clues

No Place to Hide: Investors to Trawl Europe’s Q3 Earnings for Inflation Clues
Bull and bear, symbols for successful and bad trading, in front of the German stock exchange (Deutsche Boerse) in Frankfurt, Germany on Feb. 12, 2019. Kai Pfaffenbach/Reuters
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LONDON—As Europe’s third-quarter reporting season kicks into gear, investors are scrutinizing company results for any signs that supply chain strains, labor shortages, and surging energy prices are starting to undermine profits.

Confidence in Europe’s earnings resilience has helped the continent’s bourses recover from a wobble in September with the latest Refinitiv I/B/E/S data showing third-quarter profits for the 600 biggest listed European companies are expected to grow 46.7 percent from the same period in 2020.