Earlier in this series, we discussed why the SPDR Euro STOXX 50 ETF (FEZ) closed higher on November 27, 2015. But to understand what drove these results, it’s important for investors to analyze the performance of the various industries in FEZ on November 27.
Auto manufacturing industry
As we can see in the above graph, the auto manufacturing industry provided the highest weighted return of 0.01%. The performance of the industry was driven by Daimler (DDAIF) and BMW, which contributed individual returns of 0.63% and 0.97%, respectively. However, Volkswagen (VLKAY) closed lower by 1.5% after maintaining a positive trend for three consecutive days.
Oil and gas industry by contrast
The oil and gas industry provided the highest negative weighted return of -0.06% and an individual return of -2.7% on November 27, 2015, as oil prices fell ~3% that day due to a strong dollar and an oversupplied crude oil market. Stocks for Total (TOT), Repsol, and Eni SpA (EAA) yielded -0.87%, -1%, and -0.77%, respectively.
Things turned around for ING Groep
ING Groep (ING) provided the highest individual as well as weighted return in FEZ on November 27, 2015. The individual return was 1.2%. Among all the banking stocks, most of them contributed positive returns.
On November 27, ING announced that it will stop financing new businesses or clients whose business is more than 50% reliant on coal-fired power plants, as a sharpened coal policy will come in the next climate summit in Paris.
ING Groep is a financial services company engaged in retail banking, investment banking, life and non-life insurance services, business lending, mortgages, and leases. It’s currently trading at 13.2 euros. Its 52-week high is 16 euros, and its 52-week low is 9.7 euros. It has provided ~-4% return over a three-month time period.
In the next part of this series, we’ll analyze how Toshiba pushed up EWJ while banking stocks dragged it down.