Stoxx Europe 600 Stronger than S&P And Nasdaq

Rally of value shares on European stock exchanges: Stoxx Europe 600 stronger than S&P 500 and Nasdaq Composite. Banks, energy companies and industrial groups among the major beneficiaries.

European stock exchanges: value shares rally. Stoxx Europe 600 stronger than S&P and Nasdaq

Despite the economic and financial crisis characterized by the Covid-19 pandemic and the vaccination chaos, companies and companies in the European Union are seeing a rally on the value of their shares.

In particular, stocks relating to banks and travel companies increased, with international players repositioning their investments in view of a return to normalcy.

In the last month the Stoxx Europe 600 index has in fact gained 4.5%, managing to exceed in the same period the increases recorded for the S&P 500, which stood at + 3.5%, and the Nasdaq Composite, stopped at ‘1%.

European stock exchanges: value shares rally
For industry analysts, this positive trend is closely linked to the growth observed for value stocks, as investors bought shares of companies affected by the pandemic, while at the same time deciding to sell the quotations of the companies of the so-called “stay at home.” economy ”, which had particularly benefited in the first lockdown period.

As Europe is essentially a market for value stocks, as some industry experts have argued, this change clearly benefits the Eurozone over the United States, which on the other hand can count on a greater market advantage. of growth stocks.

The companies in the value sector generally belong to consolidated branches, including energy, banking and industry, and pay dividends in relation to the macroeconomic cycle that is underway.

Growth companies, on the other hand, are the most innovative and linked, for example, to the technology sector, and consequently the value of their stocks is more volatile.

Stoxx Europe 600 stronger than S&P and Nasdaq
Stoxx Europe 600 is characterized by a strong presence of value stocks, with 17% made up of credit institutions, 16% from large industrial groups and 5% from energy companies.

Only 10% is represented by technology and communication operators. On the contrary, in the S & P 500 the latter express 37% of the entire stock index.

Another element capable of playing a key role in the financial growth of the European Union is that relating to the bond market.

Thanks to the various instruments to guarantee the Member States prepared by the European institutions, such as the Commission and the ECB, optimism has increased with respect to the economic recovery of the Community bloc.

This positive climate started a process where large funds started selling safe haven assets such as bonds, causing prices to drop and yields to rise.

A process that has brought a positive impact to large European banking groups since the beginning of 2021.

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