“It sounds increasingly contrarian but my feeling is that, particularly if we get the transmission mechanism of a lower dollar, stocks outside the U.S. are set up for a good 2019,” said Chris Bailey, strategist at Raymond James.
Overall, analysts expect earnings from companies in Europe's STOXX 600 to grow 8.4 percent in 2019, the latest Refinitiv IBES estimates show. That's more than the 7.6 percent earnings growth expected for the S&P 500 .SPX
“My feeling is corporate earnings in Europe will surprise a few people in 2019,” said Bailey. “Earnings growth of 8.5 percent is more credible for Europe than for the S&P 500, which is a regime shift.”
All sectors in Europe rose during the session and among them technology .SX8P jumped 2.4 percent.
Chipmaker AMS (AMS.S
) topped the STOXX with a 10.2 percent leap.
Tech has been one of the worst-hit parts of the market as investors grew scared that waning economic growth and a U.S.-China trade war would suck the momentum out of high-growth companies.
Banks .SX7P also rallied, up 2.3 percent since hitting their lowest point since August 2016 on Thursday.
One of the most notable mover was UK inkjet printer technology maker Xaar (XAR.L
), whose shares fell 8 percent to their lowest in more than eight years after a profit warning.