SEATTLE, WA — (Marketwire) — 03/01/13 — After a strong fourth quarter of 2012 with all country constituents positive and a 6.3% return for the Russell Eurozone Index, the Index has had weaker performance for 2013 year-to-date as of February 25th. The Index returned 2.7% year-to-date as of February 25th and, within the Index, all country constituents except Portugal and Ireland have had a weaker YTD return than in the fourth quarter.
Russell Eurozone Index country constituents Italy, Germany and Luxembourg have shown the biggest decrease in equity market performance from the fourth quarter of 2012 to 2013 year-to-date as of February 25th. Italy went from 7.8% in the fourth quarter to 0.9% YTD, Germany went from 5.9% in the fourth quarter to (-7.1%) YTD and Luxembourg went from 4.4% in the fourth quarter to (-3.1%) YTD.
“The outcome of the recent Italian elections and other global uncertainties such as the looming budget sequester in the U.S. have helped create a high degree of uncertainty in the Eurozone markets,” said Wouter Sturkenboom, investment strategist with Russell Investments Europe. “From an investment standpoint, we believe this uncertainty has helped create a potential -risk-off- trigger for Eurozone markets.”
Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell-s publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index. Index returns are presented in euro-denominated terms.
Russell Eurozone Index country constituent Belgium was not included because it had one constituent with more than a 50% weighting.
Opinions expressed by Mr. Sturkenboom reflect market performance and observations as of February 25, 2013 and are subject to change at any time based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
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