SOURCE: Russell Investments

Russell Investments

April 03, 2014 08:55 ET

Emerging Eurozone: UK Lagged Behind PIIGS as Most European Equity Markets Surged in Q1: Russell Indexes

SEATTLE, WA--(Marketwired - Apr 3, 2014) - When the European Central Bank (ECB) meets today in Frankfurt, they will have positive market data to contend with from Q1, as most European equity markets have closed out a positive overall first quarter as shown in the Russell Indexes table below.

The Russell Eurozone Index, comprised of all EU member nations that have adopted the euro, returned 3.7% in the first quarter. Yet beneath this moderate growth figure lie strong surges within Eurozone Index country constituents Portugal (+16.4%), Italy (+15.8%), Ireland (+5.8%), Greece (+15.7%) and Spain (+5.8%).

In contrast, the UK, as part of the more broad Russell Developed Europe Index, fell by (-0.5%) over the same period. The Russell Developed Europe Index returned 2.9% in the first quarter.

"While there is general speculation in the Eurozone about the likelihood of quantitative easing by the ECB, we believe this is still an unlikely prospect," said Wouter Sturkenboom, Investment Strategist for Russell Investments Europe. "We expect Mario Draghi to continue to take a 'wait and see' stance, taking into account such factors as the ongoing economic recovery and improving sentiment, fall in peripheral spreads and strong capital inflows into the Eurozone."

Index / Index Country Constituent 2014 YTD as of March 31
Russell Eurozone Index 3.7%
Russell Developed Europe Index 2.9%
Portugal 16.4%
Italy 15.8%
Greece 15.7%
Ireland 5.8%
Spain 5.8%
Switzerland 5.0%
Sweden 4.4%
France 3.5%
Norway 2.7%
Netherlands 2.3%
Finland 1.3%
Austria 0.7%
Germany 0.3%
Luxembourg -0.4%
United Kingdom -0.5%

Source: Russell Investments. Total returns, denominated in euros.

The Russell Global Index measures the performance of the global equity market based on all investable equity securities, and is constructed to provide a comprehensive and unbiased barometer for the global segment, The Index includes more than 10,000 securities in 47 countries, and covers 98% of the investable global market. All securities in the Russell Global Index are classified according to size, region, country and sector; as a result the index can be segmented into more than 300 distinct benchmarks.

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.  

Global equity involves risk associated with investments primarily in equity securities of companies located around the world, including the United States. International securities can involve risks relating to political and economic instability or regulatory conditions.

Opinions expressed by Mr. Sturkenboom reflect market performance as of March 31, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance. 

This material is not an offer, solicitation or recommendation to purchase any security.

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. The information, analysis and opinions exressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

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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.

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