* European equity YTD sector performance: bit.ly/2h3SjpY
* Major European indexes: bit.ly/2hRsmKh
By Kit Rees
LONDON, Dec 16 Political events, wild swings and
big sector rotations have punctuated a busy year for European
equities, which, after a dismal start, have bounced in the final
weeks to recoup most of their earlier losses.
Markets reacted in ways that few predicted to June's Brexit
vote in Britain, Donald Trump's U.S. presidential election win
in November and Italy's referendum on constitutional reform.
"People have been a bit like rabbits in the headlights
around these events and then, as a result, have been somewhat
surprised by the market response," said Will James, manager of
the Standard Life Investments European Equity Income fund.
After all the twists and turns, Europe's benchmark
FTSEurofirstindex is poised to end little changed for
the year - but that masks some wild fluctuations. Here is a look
at some of the biggest winners, losers and everything in
BEST-PERFORMING EUROPEAN MARKETS: Russia and Bulgaria
, both up around 26 percent so far this year. ( bit.ly/2hRsmKh
A recovery in oil prices, a rush back to emerging markets
and a stable rouble have lifted Russian stocks. Among Bulgarian
equities, banks have been the stand-out performers.
WORST-PERFORMING EUROPEAN MARKETS: Bosnia, down 33
percent, and Denmark, down 15.6 percent.
The falls in these two markets have overtaken both Portugal
and Italy, which were plagued by worries about
their respective banking systems. Denmark's main index is
particularly heavy on healthcare stocks, which have fallen out
of favour this year.
BEST SECTORS: European Basic Resources, up 65
percent this year, and Oil & Gas, up nearly 20 percent.
( bit.ly/2h3SjpY )
The mining sector was the black sheep of 2015, hobbled by
debt, a slowdown in growth in China, and a slump in metals
prices. This year's recovery accelerated after Trump's election
win, which spurred a huge rotation into sectors more likely to
benefit from fiscal stimulus and wider economic growth.
Miner Anglo American is the best performing major
stock this year, up nearly 290 percent. It was closely followed
by Melrose Industries, Glencore and
ArcelorMittal, up between 145 to 240 percent.
BIGGEST TURNAROUND: European banks
Beaten-up European banks have surged in the final
quarter. Deutsche Bank is up nearly 80 percent from
its September lows, and French and Dutch banks are well off
their lows and in the green for the year.
Italian banks and Spanish banks are still among
the region's worst performing stocks for the year as a whole,
however. Italy's Banco Popolare and BPM and
Spain's Banco Popular Espanol have each fallen more
than 60 percent in 2016.
WORST PERFORMING SECTORS: Telecoms, down 17 percent,
Travel & Leisure, down 14 percent, and Health Care
, down 13 percent.
"The biggest change in the last few weeks or months is that
telecoms and utilities have been de-rated to such an extent now
where I think they are looking good value again," said Simon
Gergel, chief investment officer of UK Equities at Allianz.
While travel stocks have had a hard time because of militant
attacks in France and Belgium and security concerns in
destinations such as Turkey and Egypt, telecoms and health care
firms have suffered from a rotation out of bond proxies.
While pharmaceutical firms have been hit by increasing drug
pricing pressures in the United States, the telecommunications
sector has been dented by the failure of several mergers.
FTSE 100 RALLY: Bouncing back from an initial
sell-off after the UK's shock Brexit vote, UK blue chips are up
11 percent this year, thanks to gains among the multinational,
dollar-earning firms in the index, which should be able to
weather a weaker pound.
Among the major European indexes, the FTSE 100 is the best
performer this year.
(Reporting by Kit Rees; Editing by Kevin Liffey)