SOURCE: Russell Investments

Russell Investments

January 25, 2013 04:30 ET

Davos: Russell Global Index Returns Indicate Strong Start to Global Equity Markets in 2013 as Leaders Meet at World Economic Forum

SEATTLE, WA--(Marketwire - Jan 25, 2013) - As world business and government leaders gather for the annual meeting of the World Economic Forum, which is taking place Wednesday through Saturday in Davos, Switzerland, the theme of the Forum is "Resilient Dynamism."

The global equity markets are demonstrating resilient and dynamic performance as reflected by the Russell Global Indexes year-to-date as of January 22nd. In Europe, the Russell Eurozone Index has returned 3.7% year-to-date, following a 19.0% return in 2012. In the U.S., the Russell 1000® Index of large-cap U.S. stocks has returned 4.1% year-to-date coming off a 14.6% return in 2012. In emerging markets, the Russell Emerging Markets Index is up 1.9% year-to-date as of January 22nd while the Russell Greater China Index has returned 3.6% for the same period.

Interestingly, small-cap stocks in the U.S. and Europe are showing strong year-to-date performance, outpacing large-cap stocks. The Russell Eurozone Small Cap Index has returned 6.3% year-to-date as of January 22nd (after a 25.0% return in 2012) while the Russell 2000® Index of small-cap U.S. stocks has returned 5.1% year-to-date as of January 22nd.

"Equity markets in the U.S. and globally are appearing to benefit from optimism regarding the outlook for the Eurozone coupled with hope that the U.S. is able to responsibly resolve its debt-ceiling debate," said Wouter Sturkenboom, investment strategist with Russell Investments Europe. "The 'risk-on' environment for investors thus far in 2013, despite continued policy uncertainty in the U.S. and weak economic factors in the Eurozone, is reflected in the returns of the Russell Indexes, particularly in the strong relative performance of small-cap stocks relative to large-cap stocks year-to-date in the Eurozone."

Index 2012 2013 YTD a/o 1/22
Russell Eurozone Index 19.0% 3.7%
Russell Eurozone Small Cap Index 25.0% 6.3%
Russell 1000 Index 14.6% 4.1%
Russell 2000 Index 14.6% 5.1%
Russell Emerging Markets Index 17.3% 1.9%
Russell Greater China Index 19.3% 3.6%

Source: Russell Investments

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.

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. Index returns are presented in euro-denominated terms.

Opinions expressed by Mr. Sturkenboom reflect market performance and observations as of January 22, 2013 and are subject to change at any time based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.

These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page. The opinions expressed in this material are not necessarily those held by Russell Investments, its affiliates or subsidiaries. While all material is deemed to be reliable, accuracy and completeness cannot be guaranteed. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.

The Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here:

Russell Investment Group is a Washington, USA Corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.