The recent rally in stocks has run out of steam and there are no reasons for it to come back, two analysts told CNBC Thursday.
The latest round of better-than-expected earnings for some companies showed that they were good at cost cutting, but their turnover has been disappointing and this is not the route to sustainable profit, Neil Dwane, chief investment officer, equities for Europe, RCM, said.
"Generally, most people have now missed (the rally)," he said.
Changes in accounting rules in the US mean that the burden of writedowns on company profits has eased. "They can mark them back to myth and that's why we had the rally," Dwane told "Squawk Box Europe."
But the rally, which has seen the S&P rise to 18 times earnings, was not justified by fundamentals, he added.