European investors shifted towards value stocks in November, with Switzerland, Spain, and Italy outperforming. Roche’s 18% gain boosted healthcare. The Morningstar Europe Index rose 0.89%, led by healthcare and financials. Technology and industrials lagged. Large-cap stocks fared better than small-caps. Sector performance influenced country and style movements.

Value stocks outperformed growth stocks in Europe, with the Developed Europe Value Index returning 2.63% compared to a 0.64% drop in the Growth Index. Investors rotated away from rate-sensitive and secular-growth stocks into value sectors. Healthcare and financials led, while tech underperformed. The difference in returns between value and growth peaked at 17.3%.

Healthcare stocks surged 4.94% in Europe, while technology fell 4.06%. Countries with heavy healthcare and financial weightings outperformed, while tech-heavy ones struggled. Roche’s 18.5% gain boosted healthcare sector performance. Defensive consumer stocks like Nestlé and LVMH also delivered solid gains, with utilities and communication services performing well.

Individual European stocks were driven by large-cap names in November. Roche’s surge contributed to healthcare’s top performance. Nestlé and LVMH provided stability in consumer sectors. Iberdrola and Deutsche Telekom led in utilities and communication services. Siemens dragged down industrials, while ASML and Shell contributed to technology and energy sector declines.

Read more at Morningstar: European Stock Market in November: Winners and Losers by Sector and Country