The STOXX® Global 1800 index posted its best month so far this year in November as investors reacted positively to Donald Trump’s decisive victory for a second term as US president.
The global benchmark added 4.6% in the month when measured in US dollars and including dividends, taking its 2024 gain to 22.1%. The global benchmark rose 7.5% in euros over the month as the greenback climbed 2.7% against the common currency. The STOXX® World AC index added 3.6% in November.
The Eurozone’s EURO STOXX 50® slid 0.3% in euros on a total-return basis, while the pan-European STOXX® Europe 600 gained 1.2%.1 The STOXX® North America 600 rose 6.4% in dollars and the STOXX® USA 500 jumped 6.5%. The STOXX® Asia/Pacific 600 added 1.2% in dollars. The STOXX® Developed World rose 4.4% and the STOXX® Emerging Markets fell 3.3%.
Figure 1: STOXX Equity World indices’ November risk and return
Source: STOXX. Gross returns. Data as of November 29, 2024.
Figure 2: STOXX Benchmark indices’ November risk and return
Source: STOXX. Gross returns. Data as of November 29, 2024.
Germany’s DAX® increased 2.9% in the month. MDAX®, which gauges the performance of German mid-caps, was unchanged.
Figure 3: DAX indices’ November risk and return
Source: STOXX. Gross returns. Data as of November 29, 2024.
| For a complete review of all indices’ performance last month, visit our November index newsletter. |
Tariffs, stagnation
Stocks jumped in the immediate aftermath of Trump’s victory on November 5. Among the president-elect’s plans for the economy, he’s pledged to cut taxes, raise import tariffs and embrace crypto markets. The prospect of American trade protectionism weighed on the outlook for European exporters and the region’s economy, already struggling with stagnation in some of the largest countries.
Figure 4: Total annual % returns for STOXX World AC index
Source: STOXX. Gross returns.
Figure 5: Select STOXX benchmarks’ returns since 2023
Source: STOXX. Gross returns in dollars except for STOXX Europe 600 Index, which is in euros. Data from Dec. 30, 2022, to November 29, 2024.
Volatility drops
The VSTOXX® (EURO STOXX 50® Volatility), which tracks the price of EURO STOXX 50 options traded on Eurex, slipped to 17 at the end of last month from 21.7 in October. A higher VSTOXX reading suggests investors are paying up for puts that offer insurance against stock price drops. The VDAX®, which measures volatility in German equities, fell to 14.6 from 19.7 in October.
Factor investing
Among the STOXX Factor indices, the Momentum signal led gains last month, while losses was the worst relative performer (Figure 6).
Figure 6: STOXX Factor (Global) indices’ November risk and return characteristics
Source: STOXX. Gross returns. Data as of November 29, 2024.
Climate benchmarks
Within climate benchmarks, the STOXX® Global 1800 Paris-Aligned Benchmark (PAB) added 3.5%, as did the STOXX® Global 1800 Climate Transition Benchmark (CTB). The PAB and CTB indices follow the requirements outlined by the European Commission’s climate benchmarks regulation.
Sustainability indices
The STOXX® Global 1800 ESG-X index rose 4.7% in the month. The STOXX® ESG-X indices are versions of traditional, market capitalization-weighted benchmarks that observe standard responsible exclusions.
The DAX® ESG Screened rose 1.9% in the month. The index reflects the composition of the DAX benchmark minus companies that fail to pass norms-based and controversial weapons screenings, meet minimum ESG ratings or are involved in certain business activities considered undesirable from a responsible investing perspective.
Within indices that combine exclusions and best-in-class ESG integration, the EURO STOXX 50® ESG index fell 0.2% over the month. Germany’s DAX® 50 ESG index (+2.2%)2, which excludes companies involved in controversial activities and integrates ESG scoring into stock selection, lagged behind the benchmark DAX in the month.
The STOXX® Global 1800 SRI climbed 2.7%. The STOXX SRI indices apply a set of carbon emission intensity, compliance and involvement screens, and track the best ESG performers in each industry group within a selection of STOXX benchmarks.
Thematics, digital assets
Fourteen of 36 STOXX® Thematic indices outperformed the benchmark STOXX Global 1800 last month. The STOXX® Global Metaverse index (+10.4%) showed the biggest gain, while the STOXX® Global Silver Mining index (-10.4%) led losses.
The STOXX® Digital Asset Blue Chip index, which aims to track high-quality assets that represent the crypto universe today, rose 4.1% in the month.
Dividend strategies
Dividend strategies performed poorly in the month that ended. The STOXX® Global Maximum Dividend 40 (-2.3% on a net basis) selects only the highest-yielding stocks. The STOXX® Global Select Dividend 100 (+0.6%) tracks companies with sizeable dividends but also applies a quality filter such as a history of stable payments.
Minimum variance
Minimum variance strategies had smaller gains than benchmarks in the month. The STOXX® Global 1800 Minimum Variance added 3.7% and the STOXX® Global 1800 Minimum Variance Unconstrained advanced 3.6%.
The STOXX Minimum Variance Indices come in two versions. A constrained version has similar exposure to its market capitalization-weighted benchmark but with lower risk. The unconstrained version, on the other hand, has more freedom to fulfill its minimum variance mandate within the same universe of stocks.
1 Throughout the article, all European indices are quoted in euros, while global, North America, US, Japan and Asia/Pacific indices are in US dollars.
2 Figures in parentheses show last month’s gross returns.