European equity markets kicked off the start of 2013 with positive returns, according to a new report.
Russell Investments disclosed today the results of its Russell Eurozone Index, which posted a +2.4 percent rise in the first week of the 2013. In addition, dynamic-oriented stocks have outperformed defensive-oriented stocks for this same time period, with the index returning 3.4 percent and the Russell Eurozone Defensive Index returning 1.1 percent.
This follows a similar pattern from the fourth quarter of 2012, in which the Russell Eurozone Dynamic Index (+8.3 percent) also outperformed the Russell Eurozone Defensive Index (+4.1 percent).
The Russell Eurozone Index has indicated that Greece (+8.7 percent) has been the top performing country so far in 2013 (as of 1/7/13), followed by Finland (+5.3 percent) and Italy (+4.2 percent). Bringing up the rear in the Russell Eurozone Index are Germany (+1.6 percent), France (+1.9 percent) and The Netherlands (+2.2 percent).
"European equities remain volatile and far too dependent on policy progress yet have shown strong relative performance as evidenced by the recent index returns," says Wouter Sturkenboom, investment strategist with Russell Investments Europe. "Recent returns for the European equity markets suggest that crisis level policy concerns may have abated somewhat in this region as the U.S., at least temporarily, solved its 'fiscal cliff' issue.
“And strong performance by dynamic-oriented European stocks in 4Q and 2013 to date suggests a continued 'risk-on' stance by European investors."