Industry Sector Weekly by Lloyds TSB

While there was a broad based recovery in European equities this year, it was cyclical sectors such as the automotive, chemicals, and industrial goods & services that have been significant out performers. While there was a broad based recovery in European equities this year, it was cyclical sectors such as the automotive, chemicals, and industrial goods & services that have been significant out performers. These sectors have benefited from a range of factors, not least the rebuilding of stocks in light of improving demand conditions. All three of the aforementioned sectors have also been able to tap improving export markets or benefit from returns on foreign direct investment holdings from emerging markets. Media and personal & household goods have also shown a rebound, as consumption while still well below pre-recessionary peaks began to make a recovery. Of course these sectors have not been without their challenges, including recapitalisations and restructuring, which have not always been advantageous to existing shareholders.

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