BUZZ-A defensive March
Utilities in Europe are the only STOXX 600 sector in the green month-to-date suggesting investors are continuing to play defense.
** With inflation low and possible QE by the ECB the sweet spot for equity investors appears to be sustainable dividend yields along with mild earnings growth.
** Theme of cyclical earnings growth driven by a rebound in global capex is yet to take hold.
** Utilities are up 2.1% this month. Telecoms and basic resources bringing up the rear with declines of about 3.7% each.
** Capex growth in Europe has edged higher but remains muted relative to history. http://link.reuters.com/xav87v
** Endesa (Other OTC: ELEZF - news) is the top performing European utility constituent so far in March followed by SSE Plc (LSE: SSE.L - news) which got another boost on Wednesday from its steps to hold market share.
(Stocks Buzz is a pilot project. Please send any feedback or suggestions to vikram.subhedar@thomsonreuters.com) (RM (LSE: RM.L - news) : vikram.subhedar.thomsonreuters.com@reuters.net)