SOURCE: Russell Investments

Russell Investments

October 24, 2013 09:33 ET

Eurozone Stock Markets and Economies a Bright Point of the EU Summit? Market Data and Insight From Russell Indexes and Russell Investments

SEATTLE, WA--(Marketwired - Oct 24, 2013) - As the latest EU Summit commences today, Russell Indexes performance suggests that the prospects for the Eurozone appear to be increasingly favourable.

Eurozone stocks have enjoyed strong performance in 2013. The Russell Eurozone Index has returned 21.4% year-to-date and is up 5.1% this month alone (returns as of October 22).

Peripheral European countries have seen particular improvements. The Greek stock market has performed better than any other in Europe this month, returning 21.9%, whilst Italian stocks have risen 12.1% and Spanish stocks 10.3% (country constituents of the Russell Eurozone Index as of October 22).

Dynamic European stocks have outperformed defensive stocks so far this month, suggesting increasing investor interest in more economically sensitive, less stable and more volatile European stocks. The Russell Eurozone Dynamic Index has returned 7.4% this month versus a return of 2.3% for the Russell Eurozone Defensive Index. 

"Although some worrying aspects of the crisis remain, currently the positives marginally outweigh the negatives in Eurozone equity markets," said Wouter Sturkenboom, investment strategist with Russell Investments Europe. "With an exit from recession, improvement in sentiment, strong capital inflows and a dovish ECB all bode well for the Eurozone markets and economy. We'll continue to look for clues in upcoming data points and policy meetings such as the EU summit meeting in Brussels."

Index / Index Country Constituent  October Month-to-Date as of Oct 22  2013 YTD as of Oct 22
Russell Eurozone Index  5.1%  21.4%
Russell Eurozone Dynamic Index  7.4%  28.3%
Russell Eurozone Defensive Index  2.3%  14.0%
Russell Eurozone Index - Austria  2.3%  10.1%
Russell Eurozone Index - Finland  2.5%  28.1%
Russell Eurozone Index - France  3.5%  22.6%
Russell Eurozone Index - Germany  4.2%  19.4%
Russell Eurozone Index - Greece  21.9%  29.7%
Russell Eurozone Index - Ireland  4.0%  33.2%
Russell Eurozone Index - Italy  12.1%  24.3%
Russell Eurozone Index - Luxembourg  4.6%  5.0%
Russell Eurozone Index - Netherlands  3.0%  14.5%
Russell Eurozone Index - Portugal  5.4%  19.6%
Russell Eurozone Index - Spain  10.3%  28.0%

Source: Russell Investments. Returns are euro-denominated and are total returns reflecting reinvestment of dividends and distributions.

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. 

Past performance does not guarantee future performance. This material is not an offer, solicitation or recommendation to purchase any security. Returns cited are euro-denominated.

Opinions expressed by Mr. Sturkenboom reflect market performance and observations as of October 22, 2013 and are subject to change at any time based on market or other conditions without notice. 

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.

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.