France and Germany's profit rebound is weak, luxury goods and automobile industry drag down the outlook.

Profit rebound expectations in France and Germany - mainly driven by the recovery of automotive and luxury companies - seem to be facing increasing risks. Data shows that in recent weeks, market expectations for next year's earnings for the French CAC 40 index and the German DAX index have been lowered, while expectations for benchmark stock indices in other European regions have been raised. Compared with Switzerland's healthcare-focused SMI index and Spain's finance-focused IBEX index, France and Germany's benchmark stock indices are heavily weighted towards non-essential consumer goods and industrial sectors - both of which may not be able to meet high expectations next year.