That represents an improvement compared to the previous quarter when earnings fell 2pc, but it's down from more than 3.6pc growth expected for Q2 two months ago and a sharp decline versus the same quarter of last year when earnings rose 9.7pc.

The lower forecast will underscore concerns about the corporate health of Europe Inc as results season kicks off next week amid worries about a broader macroeconomic slowdown across the region.

On Tuesday, German chemicals giant BASF blamed a full-year profit warning on trade frictions, sending shares in the company and the global chemicals sector sharply lower.

Europe's STOXX 600 second-quarter revenue is seen rising 1pc year-on-year, compared with 1.1pc a week ago.