SOURCE: Russell Investments

Russell Investments

January 04, 2013 09:19 ET

Cliff Bounce: Russell Global Indexes Reflected Positive Returns on First Trading Day of 2013 for the Global Equity Markets

SEATTLE, WA--(Marketwire - Jan 4, 2013) - European equity markets showed positive returns on Wednesday, January 2nd 2013 as reflected by the Russell Eurozone Index, the day after U.S. Congress passed a resolution to avert the so-called "fiscal cliff." The Russell Eurozone Index reflected a daily return of 2.4%, led by country constituents Greece (3.8%), Finland (3.8%) and Italy (3.6%). 

Other world equity markets also performed strongly Wednesday, with positive returns for the Russell U.S. large-cap Russell 1000® Index, U.S. small-cap Russell 2000® Index, Russell Greater China Index and Russell Emerging Markets Index. This follows positive returns for these indexes in 2012. 

"By forging a last minute deal to mitigate much of the immediate impact of the fiscal cliff, the White House, Senate, and the Republican-controlled House of Representatives addressed the first (but by no means only) policy challenge in 2013 -- and the short-term reaction has been a rally in global risk assets as shown by the indexes to begin the year," said Stephen Wood, Chief Market Strategist for Russell Investments. "An 'all clear sign' is premature as unresolved fiscal issues in the U.S. as well as Europe will keep uncertainty alive in the coming months. As a consequence, we expect to see ongoing volatility and a 'risk-on/risk-off' investment environment globally, which may increase the need for a dynamic, multi-asset portfolio approach." 

Index / Index Country Constituent   2012   January 2, 2013
Russell Eurozone Index   19.0%   2.4%
Greece   25.1%   3.8%
Finland   15.7%   3.8%
Italy   12.9%   3.6%
Spain   2.4%   3.2%
Austria   35.3%   3.1%
Luxembourg   8.4%   2.8%
Portugal   8.4%   2.8%
Ireland   21.7%   2.6%
France   21.3%   2.5%
Germany   29.4%   2.1%
Belgium   35.6%   2.0%
Netherlands   8.5%   1.5%
Russell 1000 Index   14.6%   2.1%
Russell 2000 Index   14.6%   2.4%
Russell Greater China Index   19.3%   1.9%
Russell Emerging Markets Index   17.3%   1.6%

Source: Russell Investments

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.