Global Earnings Remain Robust

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Includes: ACWF, ACWI, DGT, DTEC, ESGF, ESGW, FIGY, FIHD, FLQG, FLQH, GLQ, HACW, HDMV, RWV, VGFO, VT, WBIL, XMX
by: FTSE Russell

Investors may find comfort with one key fundamental: continuing robust expectations for global earnings.

As we highlight in our Market Maps Monthly Performance Report for January, the consensus EPS growth forecast for the FTSE All-World Index is currently 16% for 2018. That's up from forecasts of 11% just three months ago and would represent a significant acceleration from the 11% pace of 2017.

The US is driving most of this global earnings growth outlook. The FTSE US Index consensus forecast for growth is 21.3% this year, an upward revision of more than seven percentage points from consensus estimates just three months ago. That's more than twice the 9.8% growth forecasted for the FTSE All-World ex US Index.

As shown below, cyclically sensitive Oil & Gas, Basic Materials and Financials industries saw the biggest upward revisions globally. Once again, upgrades were even more pronounced for those same industries in the US. Consensus forecasts currently look for 2018 EPS growth of 66%, 33% and 21% for US Oil & Gas, Financials and Basic Materials Industries, respectively.

Thomson Reuters I/B/E/S, a subsidiary of Thomson Reuters, provides consensus company earnings forecasts and stock recommendations on 22,000 companies, from 900 contributors around the globe, across over 100 developed and emerging markets.

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