European markets positive in November

European markets ended in positive territory in November with the S&P Europe 350 posting a slight gain of 2.5%.

Attention remains on the European Central Bank to announce further stimulus in December,  notes Tim Edwards, Senior Director, Index Investment Strategy at S&P Dow Jones Indices.

With the recent updates for eurozone inflation remaining resolutely negative, the pressure – and expectation – is on the European Central Bank to announce further stimulus in December.

Following a now familiar pattern, bond yields fell and the region’s equity markets rose in approval of the anticipated bout of central banking largesse. The S&P Europe 350 closed November with a total return of 2.5%, while the S&P Pan-Eurozone Developed Sovereign bond index closed the month with a gain of 0.45%.

Despite lagging its continental rivals (particularly in pound sterling), equities in the UK also finished in positive territory. This positive performance is all the more laudable given the relatively higher concentration of energy and materials-related companies in the UK’s market; every commodity sector fell this month as the S&P GSCI Energy recorded double-digit losses.

Every sector of the S&P Europe 350 posted a gain this month, with the typically less-volatile Industrials sector taking a rare moment in the spotlight. It was generally a positive month across countries too, with only Portugal and Luxembourg failing to contribute positively.

Loosely speaking, November was a month characterized across markets by a continuation of year-to-date trends. This was particularly visible in our European equity strategy and factor indices, as previous winners Quality, Momentum, Growth and Low Volatility topped our strategy charts once again.

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