November Was a Bullish Tech Festival, December Could be Different

European
markets
celebrated
inflation
data
and
the
pause
in
interest
rates
by
the
central
banks
last
month.
In
Europe,
the
Morningstar
Europe
NR
index
(with
dividends
reinvested)
rose
by
6.7%
in
Euros
in
November
and
accumulated
a
gain
of
11.1%
for
the
year.

Analysing
the
November
performance
of
the
stocks
that
make
up
the
European
market,
the
higher
gains
of
growth
companies
over
value
companies
clearly
stand
out.
Focusing
more
specifically
on
the
large
companies
segment,
the
Large
Growth
style
gained
8.7%
versus
4.6%
for
the
Large
Value
style.

Style Box

The
poor
relative
performance
of
the
value
style
is
largely
explained
by
the
bad
performance
of
the
energy
sector,
which
was
the
only
one
to
end
November
in
negative
territory,
down
0.9%
in
euros.
In
fact,
the
companies
that
contributed
most
negatively
to
the
performance
of
Large
Value
were
the
oil
majors
such
as
Shell
[SHEL],
BP
[BP]
and
TotalEnergies
SE
[TTE],
which
lost
1.2%,
2.5%
and
1.5%
in
euros
respectively.

But
within
this
group
of
stocks,
there
were
two
companies
that
fell
sharply:
Germany’s
Bayer
AG
[BAYN]
and
Uniper
SE
[UN01],
which
declined
-22.9%
and
20.4%
in
euros
respectively.

In
the
area
of
growth
companies,
the
most
notable
were
those
in
the
technology
sector
such
as
ASML
Holding
NV
[ASML],
SAP
SE
[SAP]
and
Adyen
NV
[ADYEN]
which
rose
by
10.5%,
14.8%
and
69.0%
respectively.
The
technology
sector
rose
the
most
last
month
with
a
gain
of
16.0%
in
euros.

The
second
most
profitable
sector
was
real
estate,
despite
the
difficulties
posed
by
high
interest
rates,
and
the
third
most
profitable
sector
was
industrials,
up
10.5%.
Three
of
the
largest
companies
in
the
sector
rose
significantly:
Siemens
AG
(+10.9%)
[SIE],
Schneider
Electric
SE
(+16.3%)
[SU]
and
ABB
Ltd
(+15.6%)
[ABBN].

Sector table

Regarding
valuations,
the
consequence
of
the
strong
performance
of
large-cap
growth
stocks
has
was
that
this
segment’s
valuation
returned
to
overvalued
territory,
with
a
Price/Fair
Value
of
1.06
(indicating
a
6%
overvaluation).

Style box

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