By Michael Msika and Jan-Patrick Barnert, Bloomberg markets live reporters and strategists
European stocks have had a flat month, another departure from typically favorable last-quarter seasonal patterns. Contrarian bulls are starting to wake up to the depressed sentiment and extreme underperformance.
The Stoxx 600 extended its underperformance versus the S&P 500 in November in what is already one of the worst years on record for relative returns. Euro-area equities have been plagued this month by political uncertainty in France and accelerating outflows from the region. But: December has been positive for the region about 70% of the time over the past 25 years.
