Santa Rally Eludes Europe Stocks Lagging U.S. by Most Since 1991Blaise Robinson and Sofia Horta e Costa
Anyone pinning their hopes on a so-called Santa rally to revive Europe’s lagging equity market is running out of time.
The Stoxx Europe 600 Index has barely budged from early November levels, leaving its fourth-quarter advance at just 0.6 percent. With the S&P 500 Index gaining 6.4 percent since Sept. 30, U.S. stocks are set for their biggest end-of-year win over those in Europe since 1991.
Renewed appetite for bank stocks at the start of December failed to ignite the kind of risk-taking in Europe that has sent U.S. benchmarks to all-time highs. Since the Stoxx 600 hit a two-year high in November, investors have instead had to field selloffs in single stocks such as Steinhoff International Holdings NV, Hennes & Mauritz AB and Saga Plc.