Auto Manufacturers Led FEZ, Banking Dragged It Down
European Equity Ended Lower As Fed Decision Draws Closer
Auto manufacturing industry
On December 10, 2015, the auto manufacturing industry yielded the highest positive return of 2.5% within the SPDR Euro STOXX 50 ETF (FEZ). Auto manufacturing constitutes 7% of FEZ’s holdings. The high point of the day was that all the auto manufacturer stocks had positive returns.
Stocks such as Volkswagen (VLKAY), Daimler (DDAIF), and BMW gained 0.87%, 0.92%, and 0.65%, respectively on December 10. The auto manufacturing industry is a direct beneficiary of falling crude oil prices.
Transportation industry
The transportation industry rose 1.6% on December 10. It provided the second highest return after the auto manufacturing industry. Transportation stock Deutsche Post rose 1.6% that day.
Banking industry, the biggest loser
In contrast, the banking industry fell 3.5% for the second consecutive day on December 10, 2015. Investors’ focus shifted to the crucial outcome of the upcoming Federal Reserve meeting and a possible interest rate lift-off.
Ahead of the Federal Reserve meeting, banking stocks became more volatile. Stocks such as UniCredit (UNCFF), ING Groep (ING), Banco Santander (SAN), and Société Générale fell 1.1%, 1%, 0.65%, and 0.26%, respectively, on that day. The financial sector (XLF) was marginally higher on December 10 and gained 0.08% that day.
Food industry
The food industry provided the second highest negative return of 2.3%. Stocks such as Danone (DANOY) and Carrefour (CRRFY) fell 0.87% and 1.4%, respectively, on December 10.
Now let’s analyze the performance of the top performers in FEZ on December 10, 2015.
Browse this series on Market Realist:
