Equities in Europe experience habitual turbulence in September
September is traditionally a challenging month for European stocks, with many indices experiencing losses. According to historical data, Germany's DAX index averages a 1.62% drop in September, while the Euro Stoxx 50, Europe's leading blue-chip benchmark, loses an average of 1.56%.
Infineon, a German technology company, has an average September loss of 6.13%, making it the weakest month in the company's history. E.ON, another German firm, also struggles, with an average September loss of 2.18%. Kering, France's luxury powerhouse, averages a 1.76% drop in September, marking a four-year losing streak.
LVMH, Europe's largest luxury group, averages a 3.42% September drop, despite a marginally better 53% win rate. SocieΜteΜ GeΜneΜrale, a French financial services company, posts an average September return of -3.11%, but boasts a 47% win rate.
Airbus, the Netherlands/France-based aerospace giant, has fallen in six straight Septembers, averaging a 4.01% decline. Schneider Electric, a French multinational, has an average September return of -2.16%, with its steepest fall of 34.43% occurring in 2001. SAP, a German software company, averages a 1.6% September decline and once dropped 40.98% in the month back in 2002.
Vivendi, a French media conglomerate, has a dismal 33% winning rate in September and an average loss of 4.07%. Deutsche Post AG, a German logistics company, averages a 1.97% loss in September and saw its sharpest monthly decline of -22.41% in 2002.
The September seasonal weakness in equity markets may be linked to factors such as post-summer rebalancing, renewed macroeconomic uncertainty, and traditionally lower trading volumes. It's worth noting that the average September performance losses of the leading European stock indices between 2014 and 2021 are not explicitly detailed in the provided search results. However, general market context indicates that, during some months within this period, indices like the Euro Stoxx 50 and DAX sometimes showed gains in volatile geopolitical and economic conditions, rather than consistent losses.
The Euro Stoxx 600, a broader European index, has also struggled in September, with an average loss of 0.96%. Italy's FTSE MIB index, while averaging a flat 0% return in September over the long term, is currently on a streak of four consecutive negative Septembers.
The S&P 500, a major US index, also loses about 1% on average during September. However, these trends do not necessarily hold true for all companies or indices, and investors are advised to conduct thorough research before making investment decisions.
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