SOURCE: Russell Investments

Russell Investments

February 12, 2015 09:20 ET

European Equities Strong Yet Defensive-Oriented Year-to-Date as Global Political Dramas Unfold: Russell Indexes

Russell Strategist Sees Investor Optimism Combined With a Healthy Dose of Caution

SEATTLE, WA--(Marketwired - Feb 12, 2015) - The Russell Developed Europe Index is up 8.4% year-to-date as of 9 February, despite notable global headline risk across Europe, Russia and the Ukraine. And, while the overall index performance has been strong year-to-date, defensive-oriented stocks have outperformed dynamic-oriented stocks within the Russell Developed Europe Index, indicating continued caution on the part of European investors. The Russell Developed Europe Defensive Index has outperformed the Russell Developed Europe Dynamic Index by 2.3% year-to-date as of 9 February.

Wouter Sturkenboom - Senior Investment Strategist, Russell Investments
"Performance continues to be quite positive in the European equity markets this year, particularly from a euro currency based perspective. And while we continue to see positive performance in the Eurozone this year, global headline risk is evidently still a big concern. The upcoming UK election, the ongoing diplomatic crisis in Russia and the Ukraine and the renewed fear that Greece may exit the Eurozone have combined to create an underlying skepticism among European investors, as illustrated by the outperformance of defensive-oriented stocks relative to dynamic-oriented stocks in the Russell Developed Europe Index this year. Despite this apparent skepticism on the part of European investors, we continue to be quite positive on the European economy and markets going forward." 

For more information on the Russell Indexes, go to the Russell Indexes website.

2015 YTD Global Equity Market Performance - Russell Indexes

Russell Index / Index Country Constituent   YTD as of 9 February
Russell Developed Europe Index   8.4%
Russell Developed Europe Defensive Index   9.4%
Russell Developed Europe Dynamic Index   7.1%
Russell Developed Europe Index - Norway   13.1%
Russell Developed Europe Index - Switzerland   9.8%
Russell Developed Europe Index - Sweden   9.7%
Russell Developed Europe Index - Finland   9.4%
Russell Developed Europe Index - France   9.1%
Russell Developed Europe Index - Germany   9.0%
Russell Developed Europe Index - United Kingdom   8.8%
Russell Developed Europe Index - Ireland   8.7%
Russell Developed Europe Index - Italy   7.5%
Russell Developed Europe Index - Luxembourg   7.0%
Russell Developed Europe Index - Austria   6.6%
Russell Developed Europe Index - Netherlands   6.1%
Russell Developed Europe Index - Spain   1.0%

Source: Russell Investments. Total returns, euro denominated.

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. 

Russell Investments is the owner of the trademarks, service marks and copyrights related to its respective indexes.

Opinions expressed by Mr. Sturkenboom reflect market performance as of February 9, 2015 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance. 

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 expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

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