- DJE - Equity Market Neutral Europe PA (EUR)
- DJE - Equity Market Neutral Europe XP (EUR)
DJE - Equity Market Neutral Europe PA (EUR)
- As at:
- 91.28 EUR
- 94.02 EUR
In October, the international stock markets performed largely satisfactorily. The markets were driven above all by expectations of a provisional settlement in the trade conflict between the USA and China, although the important issues of subsidies and Chinese state-owned companies were left out. In Europe, the British government and the EU surprisingly agreed on a Brexit agreement, which also had a positive effect on the mood on the stock markets. Expectations of a further interest rate cut by the US Federal Reserve (Fed) also boosted equity markets. At the end of October, the Fed cut key interest rates by 25 basis points to between 1.50% and 1.75%. As a result, the US dollar depreciated by just under 2% against the euro. The German ifo business climate index remained at a ten-year low of 96.4 points, the purchasing managers' index for euro zone industry remained unchanged at 45.7 points in the contracting range, and industrial production fell by -2.8% year-on-year. The broad European market index STOXX 600 generated a moderate plus of 0.92% after dividends in October. A look at the sector yields suggests a recovery among cyclicals in the past month. The food sector, for example, was by far the worst performer with a minus of -5.17%, followed by the energy sector, which lost only around 2%. On the winners' side, shares in the automotive industry took the lead with a 6.8% increase in value. The construction & materials and industry sectors ranked behind, closing the month with gains of 3.5% and 3.2% respectively. DJE - Equity Market Neutral Europe remained essentially unchanged in this market environment with a plus of 0.08%. The fund benefited most from its overweight in the construction & materials sector. In addition, the overweight in the automotive sector and the stock selection in the household goods segment also paid off. On the other hand, the fund's monthly performance was adversely affected by the underweight in the industrial and credit sectors.