0822 GMT [Dow Jones]--Can European corporate earnings finally pick up in 2014, after three years of disappointment? Well, this might sound crazy given the latest poor reporting season but it's already happening, at least on an underlying basis, says UBS. That's because foreign exchange effects are masking the recovery, which has already been seen in economic data, according to strategist Nick Nelson. Although 20% of companies missed revenue expectations, domestically exposed stocks did better than those hostage to currency movements, he says. "This explains the conundrum of the biggest disconnect between macro lead indicators and earnings momentum in a decade," Nelson says. (tommy.stubbington@wsj.com)
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May 21, 2014 04:22 ET (08:22 GMT)
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