STOXX 600 Q1 earnings seen down 2.5 Refinitiv IBES
SP 500 Q1 earnings expected to fall 4.7 Refinitiv
European banks39; results in focus after turmoil
U.S. major lenders beat expectations
LVMH made upbeat comments on China

LONDON, April 24 Reuters A big splurge in spending in China after Beijing lifted COVID19 lockdowns will help cushion quarterly results of the world39;s biggest companies, investors say, even as forecasts suggest the United States and Europe are heading into a corporate recession.

Concerns are growing that tightening credit will dent the global economy. But recent data and upbeat comments from major companies like LVMH, Europe39;s most valuable listed company, about business in China have given investors some cause for optimism.

That could help extend a twomonth long winning streak in global stocks after March39;s turmoil in the banking sector led investors to slice earnings estimates.

Refinitiv IBES data points to a 2.5 decline in earnings growth in the first quarter for STOXX 600 companies, down from a forecast for 5.4 growth prior to the banking chaos.

In the United States, where major banks have already reported firstquarter results, earnings for SP 500 companies are seen falling 4.7 in the quarter, an improvement from an expected 5.2 drop seen earlier in April.

That would be a second consecutive quarter of decline, however, marking a corporate recession. Europe is headed for a recession too, the data shows, with a drop in earnings of 5.4…