SOURCE: Russell Investments

Russell Investments

May 31, 2012 11:20 ET

Russell Eurozone Index: Euro Currency Decline Impacts Russell Eurozone Index Returns YTD & MTD as of May 29th

SEATTLE, WA--(Marketwire - May 31, 2012) - Investors in European equities may have different outlooks on these markets in 2012 depending on their location and home currency, as illustrated by the performance of the Russell Eurozone Index. When examining comparative year-to-date and month-to-date returns as of May 29th for the Index denominated in the Euro, the British Pound Sterling and the U.S. dollar, some noticeable differences emerge:

  • For May month-to-date as of May 29th, the Russell Eurozone Index lost (-4.9%) in euro-denominated terms. Comparatively, the Index lost (-6.8%) in British Pound-denominated terms and (-10.0%) in U.S. dollar-denominated terms.
  • For the year-to-date as of May 29th, the Russell Eurozone Index lost (-0.3%) in euro-denominated terms. Comparatively, the Index lost (-4.6%) in British Pound-denominated terms and (-3.7%) in U.S. dollar-denominated terms.

"The Russell Eurozone Index returns help illustrate the 'double whammy' effect on the markets caused by deterioration of the euro currency in 2012. Month-to-date Index returns for Eurozone investors are -4.9%, but UK investors lost -6.8% and US investors lost -10.0%," said Russell Indexes senior research director Tom Goodwin. "The difference is due to the deterioration of the Euro: -1.8% in the EUR/GBP rate and -5.0% in the EUR/USD rate." YTD, the fall of the Euro has lopped off -4.3% from UK investors and -3.4% from US investors.

May 2012 Month-To-Date Performance (a/o May 29th)

Index EURO Denominated Return GB Pound Denominated Return US Dollar Denominated Return
Russell Eurozone Index -4.9% -6.8% -10.0%

May 2012 Year-To-Date Performance (a/o May 29th)

Index EURO Denominated Return GB Pound Denominated Return US Dollar Denominated Return
Russell Eurozone Index -0.3% -4.6% -3.7%

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 investments, 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.

Opinions expressed by Mr. Goodwin reflect market performance and observations as of May 29, 2012 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.

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: http://www.russell.com/indexes/data/daily_total_returns_global.asp

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