In June, the UK along with the overall market in developed Europe both ended the month of June with a 4.0% decline.
Data from Thomson Reuters, using the firm’s StarMine models, gives detailed analysis of stocks from various markets across the globe.
The firm uses metrics such as earnings to price, cash flow to price, book to price, and dividends to price and combines the valuation ratios in a weighting scheme that aims to ensures the most important ratios for a given stock have the greatest influence in the final score.
The various StarMine models show which types of stocks are performing well in global markets. For instance, its momentum model performed strongly in June across all regions. The momentum signals generated particularly strong performance among stocks in Developed Europe and Developed Asia.
However, StarMine also uses value as a measure of stocks, a factor that has been out of favour for some time. StarMine’s valuation model struggled in all regions except for Developed Asia ex-Japan.
Outside of Europe, the markets in Developed Asia ex-Japan and the US generally ended June flat. However, the Japanese market declined by 7.2%. In the UK all factors struggled in June, with the exception of earnings quality, indicating a flight to quality stocks during the market volatility.
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