Europe
- Benefitting from global risk-on sentiment, European equities jumped in February. The S&P Europe 350® gained 4% on the month and is now up 11% on the year. Momentum strategies enjoyed the tailwinds, with the S&P Europe 350 Momentum Index gaining 5%.
- With less than four weeks to go until Brexit, U.K. equities rallied, sending the S&P United Kingdom up 2% on the month. In a major concession, U.K. Prime Minister Theresa May promised Parliament an opportunity to vote to extend Article 50 by up to three months and to prevent a no-deal Brexit, if it rejected her updated withdrawal agreement.
- European fixed income markets were not quite as forgiving as equity markets. Sovereign Bond indices were generally down in February, as recession concerns, slowing growth and Brexit loomed large. The S&P Italy Sovereign Bond Index was down 1.3%, while U.K. Gilts were down 0.6% on the month. Investment Grade corporates did not face the same pressure however, as the S&P Eurozone Investment Grade Corporate Bond index gained 0.6%.
