Value exposures in European markets

Research Signals - May 2021

We have written several articles and monthly key drivers reports highlighting a resurgence in the performance of value factors following an extended period of underperformance in US markets. With European markets recently hitting new all-time highs, we review market developments from a similar perspective of value investing.

• Since November, European markets have been on a steady path to all-time highs, supported by large increases in ETF flows and a healthy manufacturing sector
• Value factors have regained their footing, particularly since September 2020, as short sellers reduce exposure to undervalued names
• Recent months have seen signs of improving analyst outlook in Developed Europe relative to North America and Developed Pacific regions

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.