ESG & Sustainability

Stocks had their worst month since September 2023 in March, as investors fretted about the outlook for US economic growth, inflation and international trade. US stocks paced the retreat.

An ISS ESG net-zero scenario alignment assessment shows the STOXX Global Artificial Intelligence index largely overshoots the IEA’s carbon emissions budget by 2050. Yet, that is not far from the case for the broader equities market, and technology advancements may help change the situation in coming years.

Changes were announced as part of the March regular review, which also saw the introduction of methodology changes to have the indices aligned with the new ESMA fund naming guidelines.

European stocks extended January’s strong performance last month, as investors continue to favor a region that’s underperformed in recent years. US indices failed to keep their momentum.

Stocks jumped in January as investors’ optimism that earnings will continue to grow overshadowed concerns about global politics and trade issues.

Three iShares ETFs will switch to multifactor indices designed by STOXX and BlackRock, expanding an existing collaboration. The indices implement optimized strategies targeting risk premia while controlling for risk, and additionally screen out companies based on controversial activities and carbon emissions.

The next-generation net zero indices focus on a real-world view of the global low-carbon transition, and offer investors the tools and advanced data to steer capital towards companies driving the decarbonization journey.

Stocks dropped in December, paring global indices’ double-digit returns in 2024.

To better understand what impact the ESMA guidelines will have on the ETF market, ETF Insider caught up with STOXX’s Antonio Celeste, Head of Sustainability, Index Product Management, and Saumya Mehrotra, Associate Vice President, Index Product Management.

Changes were announced as part of the December regular review of the DAX 50 ESG, DAX 50 ESG+, DAX 30 ESG, DAX ESG Target, DAX ESG Screened, MDAX ESG+, MDAX ESG Screened and DAX indices.

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.

Stocks fell for the first month in six in October as earnings disappointments from technology companies and rising bond yields drove investors to take profits from this year’s rally.