Strong Gains for Europe Stocks in 2013
Stoxx Europe 600 Index Rose 17% in Biggest Annual Gain Since 2009 European stocks cemented their biggest annual gain since 2009, edging up in the final session of the year. At Tuesday's close, London's FTSE 100 index had risen 0.3% to 6749.09, up 14% for the year. France's CAC-40 added 0.5% to end the year at 4295.95, 18% higher. In Germany, where trading for the year wrapped up on Monday, the DAX index has surged 26% in 2013. The pan-European Stoxx Europe 600 Index has risen 17% in 2013, the biggest annual gain since 2009, boosted by the gradual improvement in the European economy and the easy-money policies of global central banks. With the region's debt crisis continuing to ease, investors have stepped in to pick up bargains, with cash flowing into European equity funds after years of outflows. Countries that fell out of favor with investors during the euro-zone's protracted debt woes have also been strong performers this year. Spain's IBEX 35 and Italy's FTSE MIB have gained 21% and 17% respectively, while Greece's ATHEX Composite leapt by 28%. Europe's markets have enjoyed a particularly strong end to the year as investors shrugged off the U.S. Federal Reserve's decision earlier this month to scale back its monetary stimulus, taking the move as a sign the recovery is gathering pace in the world's largest economy. That confidence has also bolstered stocks on Wall Street, with the Dow Jones Industrial Average reaching a fresh record close Monday, on track for its best annual performance since the late 1990s.