According to Jinshi Data, the European earnings season has been "positive" so far, with the net profit margin of pharmaceutical, banking and telecommunications stocks at 21%, and their earnings breadth and performance exceeding market expectations.

Morgan Stanley strategist Regiane Yamanari noted in a report that stock prices tend to react negatively to earnings, with companies with poor performance falling 5% on average per day, while companies with good performance rose 2% on average per day.

Broader concerns about economic growth, coupled with a repricing of more rate cuts, have driven investors toward stocks that are sensitive to bond yields. Strong U.S. GDP data and healthy labor market data should ease those concerns.

Strategists expect Europe’s earnings revisions for the next 12 months to turn positive again during this earnings season.