European earnings are expected to rise this year as growth improves, the euro weakens and commodity prices strengthen.
Bank of America Merrill Lynch on Friday raised its forecast for 2017 European earnings by 11 percent.
"As we enter 2017, growth appears to be accelerating, with the ISM (manufacturing data) surging in January and European PMIs hitting a five year and a half high," BoA said in a research note Friday.
Data released Wednesday showed U.S. December ISM services and non-manufacturing beating forecasts. Also this week, the euro zone PMI figures came in strongly. On Friday, retail sale figures and economic sentiment were also supportive of an upbeat European economy.
"Add in a weaker euro and our strategists' bullishness on commodity prices, and European earnings prospects look good," the bank added.
For next year, BoA is forecasting an 8 percent increase in earnings. If both, the 2017 and 2018 figures materialize, "2017-18 would be the best years for European earnings since the global finance crisis," the bank said.