From Morningstar:

European stock markets had a slow start to the year, with the Morningstar Europe Net Return Index up 1.4% in euros in January, revealing differences between sectors, factors, and styles. The Large Growth segment saw a 4.1% increase, while Large Value declined by 0.6%. Large companies gained a combined 2.1% compared to 1.0% for smaller companies. Factors, sectors, and valuations were all analyzed. Among large cap growth companies, ASML Holding NV, Novo Nordisk A/S, and SAP SE were the biggest contributors to January’s gains. On the Large Value side, Deutsche Telekom AG, Volkswagen AG, and AXA SA saw significant rises but couldn’t offset losses in other companies. The technology sector rose 8.1% in January thanks to strong performances from ASML Holding NV, SAP SE, Dassault Systemes SE, Capgemini SE, and ASM International NV. The healthcare sector also did well, with Novo Nordisk leading the way. Utilities and basic materials sectors also saw declines. Valuations revealed that value is more attractive than growth and large companies are more expensive than smaller companies. This news would be particularly engaging to investors, especially those interested in European stocks.



Read more: Growth & Tech Stocks Lead Gains at Start of Year