
As companies start reporting on second-quarter earnings, market expectations range widely. For the tech-heavy US NASDAQ 100 index, earnings are forecast to come in 14% higher than in the same quarter a year ago. The figure is similar for the US Russell 2000 index of small capitalisation stocks. In emerging markets, it is again tech sectors that are expected to show the most robust increases in profits. The outlook is poorer for value indices. For the US Russell 1000 Value, analysts are forecasting lower year-on-year earnings, partly reflecting lower oil prices, though this is not the only factor. The outlook for Europe is similar. Japan is different only insofar as the estimates for a contraction in earnings are not a function of what is happening in the energy sector, but among carmakers.