European stocks investing attractive on better outlook and corporate earnings (LON:FEV)

Fidelity European Trust PLC (LON:FEV) monthly factsheet for the period ended 28 February 2023.

Portfolio Manager Commentary 

Continental European equities edged higher in February, on a better outlook for the region’s economy and corporate earnings. The European Commission (EC) raised its growth forecast for both the European Union and the eurozone. The EC also added that the region is likely to avoid a recession this winter, helped by easing gas prices on the back of warmer weather. As a result, inflation forecasts for both this year and the next came in lower than expected, which boosted investor sentiment. The ECB maintained its hawkish stance and raised its key deposit facility rate by 0.50 percentage points to 2.5% as widely expected. Meanwhile the US Fed signalled that it could keep its monetary policy tighter for longer than anticipated.

During the month, the Trust recorded positive returns but underperformed the index. The underperformance was driven by disappointing positioning in the consumer staples and discretionary sectors plus financials and industrials. Nestle was the biggest stock level detractor after the company reported below consensus 4Q22 organic sales growth. Positively, overweight positions in the health care and materials sectors drove gains. The biggest contributor was Legrand, a French manufacturer of electronic components after they posted solid Q4 results and announced a 15% dividend raise. 

On a rolling 12-month basis, the Trust recorded NAV and share price returns of 14.4% and 14.6% respectively, compared to 10.0% for the index.

Fidelity European Trust PLC (LON:FEV) is a European investment trust. It  aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Fidelity International

More articles like this

Fidelity European Trust

European stock market soars to new heights

European stocks achieved a new record, driven by the ongoing surge in technology shares and expectations of an interest rate cut from the European Central Bank (ECB) on Thursday. The pan-European Stoxx 600 index increased by

Fidelity European Trust

European stocks shine with Stoxx 600 rising 0.53%

European stocks closed on a bright note on Monday. The pan-European Stoxx 600 climbed 0.53%. Germany’s DAX jumped 0.96%, while France’s CAC 40 ended 0.49% up, while Switzerland’s SMI both ended higher by 0.49%. The London

Fidelity European Trust

European markets rise amid heightened geopolitical tensions

European markets were higher on Monday amid heightened geopolitical tensions following Iran’s massive drone and missile attack on Israel Saturday night. The regional Stoxx 600 index rose 0.3% in morning deals, with most sectors in positive territory. Auto

Fidelity European Trust

European economy 2024: Are appearances deceiving?

After 15 years of economic upheavals, from the European debt crisis to the Covid-19 pandemic and Russia’s invasion of Ukraine, the European economy appears set to underperform in 2024. But are appearances deceiving? First, Central and

Fidelity European Trust

European stocks rise ahead of inflation data

European stocks climbed on Thursday with investors awaiting an inflation print and minutes from the European Central Bank’s latest meeting, while shares of Basilea jumped following the U.S. regulatory approval for the drugmaker’s bacterial therapy. The

Fidelity European Trust

Global hedge funds favour European stocks over US equities

Global hedge funds have been adding European stocks to their portfolios this year while trimming their exposure to North America amid an ongoing debate over how expensive U.S. equities are, Morgan Stanley’s proprietary data showed. Europe’s