European stocks have entered the earnings season with a historic dislocation between prices and earnings, with equities having sold off while estimates remained elevated. But now the downgrades to analyst projections are finally under way and will deepen this year’s sharp slump in equities, according to Morgan Stanley and Sanford C. Bernstein strategists. Firms in Europe worth more than $2.6 trillion will report their latest figures on Thursday, with more than 80 Stoxx 600 members expected to publish results.