Fidelity European Trust: Financial stocks and gearing drive December outperformance

Fidelity European Trust PLC (LON:FEV) monthly factsheet for the period ended 31 December 2023.

Portfolio Manager Commentary

Continental European equities extended gains in December as cooling inflation figures in the eurozone and the US fuelled investor optimism. As expected, the European Central Bank (ECB) left interest rates unchanged and reiterated its commitment to maintain restrictive levels for as long as necessary, despite lowering its inflation forecasts for 2023 and 2024. However, dovish comments
from ECB official Isabel Schnabel, who is seen as the most influential voice in the conservative camp of policymakers, supported European equities.

During the month, the Trust outperformed the index, driven by strong stock picking in financials. The Trust’s use of gearing was also a source of strength. Gains were somewhat limited by weaker stock picking in consumer discretionary. Within financials, private equity and infrastructure focused asset manager EQT was the biggest stock level contributor. Shares gained amid news that EQT made the strongest offer for a stake in the German Football League’s soon to be created media rights company. Holdings in 3i Group and Partners Group also contributed marginally to relative gains. Conversely, German sportswear business Puma fell along with peers after Nike cut its annual sales forecast.

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 markets open strong as optimism rises

European stocks started the week with gains, driven by positive global market sentiment. In early trading, Germany’s DAX climbed by 0.7%, France’s CAC 40 saw a rise of 0.8%, and the UK’s FTSE 100 gained 0.4%.

Fidelity European Trust

Building a strong data economy for Europe’s future

The European Union is determined to establish a robust data economy as a foundation for its global competitiveness and digital independence. In the automotive industry, data is already transforming technologies, with innovations such as real-time traffic

Fidelity European Trust

European stocks begin the week with gains

European stocks rose on Monday, with the pan-European Stoxx 600 index up 1.2% by mid-morning in London. All sectors were in positive territory, led by construction and materials stocks, which gained over 2%. This upturn followed

Fidelity European Trust

Election week boosts European markets

European markets opened the week on a positive note, climbing on Monday after a slow start. Investors are keeping a close watch on the U.S. presidential election scheduled for Tuesday, with significant implications for markets across

Fidelity European Trust

European stocks hold steady amid improved market sentiment

European stocks remained largely unchanged as easing tensions in the Middle East brought some optimism, though declining oil prices exerted pressure on the energy sector. By mid-morning in London, the Stoxx Europe 600 Index had flattened

Fidelity European Trust

European stock market and the economic outlook

The European stock market has shown resilience despite global economic challenges in recent years. It continues to be a key focus for investors due to the region’s established financial infrastructure and the strength of its major

Fidelity European Trust

Eurozone retail sales show modest growth in August

Retail sales in the eurozone experienced a modest increase in August, showing a recovery after a stagnant performance in July. According to recent data from Eurostat, retail trade volumes in the euro area grew by 0.2%

Fidelity European Trust

European stocks climb amid global market struggles

European stocks saw an increase on Monday, defying the negative trends observed in both Wall Street and Asia-Pacific markets. By mid-morning in London, the pan-European Stoxx 600 index had risen by 0.57%, with most sectors and

Fidelity European Trust

A growing number of European businesses embrace AI

Over the past year, the adoption of AI by European businesses has grown by 32%, and this trend, if sustained, could add €600 billion in gross value added (GVA) to the European economy by 2030. This