Dollar’s slide dims earnings picture

Rising tariffs and the weakening US dollar are casting a shadow over companies’ profit guidance this earnings season, with more damage seen unfolding over the coming quarters.

- BLOOMBERG REPORTERS

Companies across Europe are already sounding the alarm following the dollar's slide to three-year lows versus the euro and to a 10-year trough against the Swiss franc. That's another headache for stock markets grappling with the risk of an economic slowdown due to President Donald Trump's policies on trade.

Given that companies in the Stoxx 600 members obtain 60% of their sales from overseas, such a large dollar slide is unwelcome, as it would sharply reduce the worth of US earnings once converted back into local European currencies.