February witnessed a bit of mean reversion among the major asset classes as the winners and losers at the extremes in recent history traded places last month. The bearish trend in commodities (Bloomberg Commodity Index) eased as the asset class generated its first monthly gain since June 2014. Meanwhile, the high-flying real estate sector (real estate investment trusts) stumbled in February, marking the first case of red ink in five months. As a result, REITs (MSCI REIT Index) were dead last in February’s horse race, retreating by 3.6% on a total return basis. As for the top performer, the award goes to foreign equities in developed markets. The MSCI EAFE rallied sharply last month, advancing 6.0% in US dollar terms (unhedged). US equities were in close pursuit, climbing 5.8% via the Russell 3000 Index.
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● Dollar near 11-year high after Chinese rate cut, eyes on ECB | Reuters
● China’s factory output rise for 1st time in 4 months | Markit
● Eurozone Consumer Prices Fall Less Than Expected In February | RTT
● Eurozone jobless rate ticks down to 11.2% in January | Eurostat
● Eurozone manufacturing maintains modest growth in February | Markit
● Germany Manufacturing PMI signals modest improvement | Markit
● UK Factory Activity At 7-month High, Exceeds Forecast | RTT