From Morningstar:

European equities had a great year in 2023, with the Morningstar Europe NR index gaining 15.5% in euros. Large-cap companies outperformed smaller counterparts with a 21.8% gain for large-caps and a 16.0% gain for small-caps for the year, but small-caps gained 7.6% in December compared to 3.6% for large-caps.

Growth companies saw a substantial increase of 29.5% in 2023, while value companies increased by 16.2%.

In December, the large growth style advanced by 3.8%, driven by the performances of ASML Holding NV, LVMH Moet Hennessy Louis Vuitton SE, and L’Oreal SA, while several companies experienced share price drops.

2023 saw various sectors rise by more than 20%, including technology, industrials, and financial services, while the defensive consumer sector had a gain of 9.5%. Real estate was the standout sector in December, gaining 9.7%, while the energy sector suffered a 0.7% decline.

Valuations in December showed that Large Growth was overvalued by 8%, while Small Value remained the cheapest investment style, and Real Estate was the cheapest sector, according to Price/Fair Value (PFV) metrics.



Read more: 2023 Was a Good Year For European Equities