According to latest estimates by Refinitiv, Q3 earnings of companies traded in European stock markets are expected to decline by nearly 3.7%, a higher decline than last week’s estimates of 3%. Q3 2019’s EPS are also supposed to see their worst rise in three years, considerably disappointing than the 14.4% rise seen in Q3 2018.

Refinitiv also forecasts that revenues could witness stagnation in the third quarter of this year, slightly better than the 0.3% decline estimated during the previous week. In comparison, revenues had registered a 5.9% growth during Q3 2018 and a 3.3% increase in Q2 2018.

If Q3 earnings decline, it would indicate a worsening in the corporate recession in European markets. Brexit uncertainties, global trade tensions and an overall weakening in economic growth across leading economies within the Eurozone are among the main drivers of the corporate recession.

Refinitiv’s latest estimates have also downgraded the outlook for Q4 2019, with EPS now forecast to grow at 9.1% vs. 9.6% expected last week, while revenue is expected to rise by 3.2% vs. 3.4% forecast during the previous week.