News & Research

November Rebound; “Up and to the Right” vs “Down and To the Right”; Not Enough Winners

Investor sentiment recovered from its lows last week but remains bearish in seven of the ten markets we follow. Of the three markets where investors were not bearish, sentiment rose from negative to neutral in the UK and Australia but declined slightly in China, after the world’s second largest economy fell into deflation last month – sparking fears that the tepid recovery so far, may have just been an illusionary blip.

As part of STOXX’s 25th anniversary celebrations, we caught up with Stephan Leithner, member of the Executive Board and responsible for Pre- & Post-Trading businesses at Deutsche Börse Group; and with Axel Lomholt, General Manager at STOXX. We got their impressions on STOXX’s growth trajectory and asked them what lies ahead for an indexing industry immersed in full transformation.

Investing has transformed radically since STOXX Ltd. was born. After a quarter-century of change, we continue to innovate with a growing family of indexing solutions that are as smart as they are accurate and reliable.

Institutional Shareholder Services (“ISS”), a leading provider of corporate governance and responsible investment solutions, fund intelligence, and events and editorial content for institutional investors and corporations, today announced the completion of its transaction to add Qontigo’s index business under the newly created “ISS STOXX” group of companies. The Qontigo index business will be rebranded “STOXX.”

SimCorp is announcing that it will merge with Axioma, a leading global provider of factor risk models, portfolio construction tools, and multi-asset class enterprise risk solutions.

Short-horizon predicted risk rose substantially last week, and now exceeds medium-horizon; Outsized style factor returns and US factor reversal last week; Return dispersion is back up.

Surprise drop in Eurozone inflation could pave the way for lower rates; Dovish Fed weighs on the dollar; Biggest stock-bond rally in 12 months boosts portfolio risk.

Daily expirations allow market participants to finetune hedging and accurately implement strategies around specific events such as economic data releases. More than 670,000 EURO STOXX 50 daily options have traded since their August listing.

The STOXX Global 1800 index fell 2.8% last month, ending 9.2% below its 2023 high in July. The STOXX World AC dropped 3%. Losses were widespread, with emerging markets and the Size factor leading the retreat.

Investor sentiment remained bearish last week across most markets we follow but halted its descent, allowing markets to enjoy a brief relief rally. Of the three markets where investors weren’t bearish, sentiment turned negative in Australia and in the UK, but rose in China, where it became increasingly bullish after recent data hinted at a bottoming out of the economy – following repeated stimulus efforts from the authorities.

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