The next headache for Europe Inc: The sliding US dollar

A 10% rise in the euro shaves 2% to 3% off earnings-per-share growth for European companies.

Europe’s telecommunications, health care, media, and consumer staples companies receive the greatest proportion of their revenue from North America

Behind the facade of Europe’s forecast-beating company earnings, cracks are appearing as exporters start to feel the pinch from regional exchange rate strength against the dollar.

The euro, Swiss franc and sterling are predicted to rise further versus the US currency, potentially spelling trouble for the Stoxx 600 equity index which, according to data compiled by Bloomberg, relies on North America for nearly a third of its sales.