SOURCE: Russell Investments

Russell Investments

March 27, 2013 10:02 ET

Defensive Eurozone: Russell Eurozone Index Indicates a Defensive Eurozone as Cyprus Gets a New Bailout Deal

SEATTLE, WA--(Marketwire - Mar 27, 2013) - The Russell Eurozone Index has returned 0.9% year-to-date as of March 25th, with defensive stocks as reflected by the Russell Eurozone Defensive Index (+3.1%) outperforming dynamic stocks as reflected by the Russell Eurozone Dynamic Index (-1.0%) for this same time period.

The Russell Eurozone Index has lost (-3.6%) since Eurozone markets first received news of the pending bailout of Cyprus from international creditors on March 18th through March 25th, when the final bailout was announced. During this same time period, defensive stocks as reflected by the Russell Eurozone Defensive Index (-1.9%) have performed better than dynamic stocks as reflected by the Russell Eurozone Dynamic Index (-5.1%). For Monday, March 25th, the Russell Eurozone Index was also down, with defensive-oriented stocks again outperforming dynamic-oriented stocks.

"Although Cyprus appears to have secured a bailout from its international creditors and will remain in the Eurozone, the situation appears to have created renewed doubt in the European markets. And, like the recent uncertain outcome of the Italian elections, it adds further uncertainty to the financial climate," said Stephen Wood, Chief Markets Strategist at Russell Investments. "This uncertainty is reflected in the negative performance of the Russell Eurozone Index in the past week and, more specifically, the gravitation of investors toward the perceived safety of defensive-oriented stocks is reflected in the strong relative performance of the Russell Eurozone Defensive Index."

Russell Eurozone Index Performance
Index   2013 YTD as of March 25th, 2013   March 18th- 25th, 2013   March 25th, 2013
Russell Eurozone Index   0.9%   -3.6%   -1.8%
Russell Eurozone Defensive Index   3.1%   -1.9%   -1.9%
Russell Eurozone Dynamic Index   -1.0%   -5.1%   -5.1%

Source: Russell Investments

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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 US dollar-denominated terms. 

Opinions expressed by Mr. Wood reflect market performance and observations as of March 25, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

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