Europe Stocks Face Risks

The video discusses the current state of the market, highlighting that optimism is decreasing as forecasts are not as high as usual. European stocks face potential volatility after a long rally, with luxury stocks like LVMH being scrutinized. Volatility may rise due to fading effects of quantitative easing and softening economic data. Earnings have been beating forecasts, but this is partly due to lowered expectations. The video concludes with expert insights on the challenges ahead for earnings.

What has been the trend in European earnings season as discussed in the text?

Why are analysts' forecasts considered to be dramatically cut ahead of the earnings season?