Sector report: Will Europe be 2014's standout market?

Developed market equities came back with a vengeance last year, as the market momentum from 2012 continued apace. The standout market during 2013 was the US, with the S&P 500 index returning more than 25% in euro terms. However, European equities also performed well, with the MSCI Europe index increasing by about 20%. European markets benefited from improving business confidence indicators and PMIs as the year progressed, as well as improvement in economic data, which saw the euro area exit recession in the second quarter. Following the sharp market correction in late May/June, this i...