A trader works on the floor of the New York Stock Exchange. Photo: AFP/Bryan R Smith

With only 12% of European companies having already reported, there is room to catch up to a strong showing in the US, but so far the region has “clearly disappointed,” Bloomberg reports, citing Julius Baer strategists.

Nearly 30% of US earnings have come in, and are as a whole beating estimates, driving stocks higher today.

Morgan Stanley reported Monday that capital goods have been a source of weakness in Europe, including misses from companies such as Atlas Copco and Sandvik.

Stoxx 600 earnings estimates dropped to 12.4% as of July 21, versus 13.4% the month prior.