Market trends

Net flows into funds tracking a DAX family index outpace the broader market, amounting to EUR 1.38 billion through February 24. Of those, EUR 1 billion flowed into ETFs tracking the benchmark DAX, while MDAX and SDAX funds also reported net investments.

VDAX, the benchmark for German equity implied volatility, remains below its long-term history and lower than other regions’ volatilities.

The STOXX World AC benchmark rose 3.3% in the month after logging an 18% advance in 2024. Investors’ focus on the strength of the US economy and corporate earnings helps offset concerns about global trade and politics.

The STOXX Europe 600 Banks index climbed 26% last year, its best performance since the 34% logged in 2021. High capital ratios, stronger earnings and expectations of consolidation in the industry helped share prices.

The STOXX World AC benchmark fell 2.2% in the month but logged an 18% advance for the year, taking its gains in the past two years to 47%. The STOXX USA 500 climbed 26% in 2024, nearly three times the return of the STOXX Europe 600.

The STOXX Global 1800 benchmark, up 4.6%, had its best month this year in November. Momentum stocks and digital assets were among the best performers in the aftermath of the US election.

The German blue-chip benchmark climbs to a record even amid a gloomy economic picture at home. Sales of AI and industrial parts are among drivers of corporate earnings growth for DAX component stocks.

The STOXX Digital Asset Blue Chip index has gained 42% since the outcome of the November 5 US elections. Optimism about lighter regulation and a more open approach to the sector from the incoming administration has lifted all index constituents.

The STOXX World AC benchmark declined 2.3% last month, its first monthly retreat since April. Earnings disappointments from high-flying technology companies and rising bond yields were among reasons that drove investors to take profits from this year’s rally.

Arun Singhal, global head of product management at STOXX, speaks to ETF Stream Editor Theo Andrew about why flows are returning to European equities, and the role indices play.

The STOXX World AC benchmark gained 2.4% last month, taking its third-quarter gain to 6.7%. Almost half of market participants forecast the Federal Reserve may cut interest rates by another 75 basis points before year-end.

The STOXX World AC benchmark rose 2.6% in August, recovering from a drop of 6.5% in the month’s first three sessions. Investors forecast the Federal Reserve will cut interest rates in September.