The Stoxx 600 index has moved sideways in the last eight months as the initial momentum experienced in Q1 faded. It rose by about 6% and was trading at €508 on Friday. It has underperformed its American peers like the S&P 500 and the Nasdaq 100 indices. So, which were the top leaders and laggards in Europe in 2024?
Top gainers in the Stoxx 600 index
The Stoxx 600 index had some notable gainers in 2024. UCB stock jumped by over 145% in 2024, making it one of the best-performing companies in the index. It surged as the company boosted its outlook. The company expects revenues to be between €5.5 billion and €5.7 billion and adjusted EBITDA to grow between 23% and 24.5%.
Rolls-Royce Holdings was another top performer in the Stoxx 600 index as it jumped by over 90% during the year. This rally happened as the company continued to publish strong results, helped by the rising demand of its civil aviation and defense business. The management has also worked to reduce costs and boost efficiency.
Rheinmetall stock price soared by 115%, making it one of the best performers in Europe. This rally mirrored the performance of other military-industrial complex companies as geopolitical risks in Europe and Asia. The company has won several big orders from European and American countries. Other defense companies like Safran and Leonardo also did well.
European banks also did well during the year, taking advantage of higher interest rates. Unicredit share price rose by over 50%, continuing its trend as the best-performing European bank in the past few years. Its strong equity position has allowed the bank to accumulate shares in Commerzbank and Banco BPM.
The other top-performing European banks were Banco de Sabadell, Caixabank, Commerzbank, Natwest, and FinecoBank.
Other best-performing companies in the Stoxx 600 index were Zalando, Argen-X, Poste Italiene, Quilter, and Prosus.
Top laggards in the Stoxx 600 index
The Stoxx 600 index had some big laggards this year. Grifols’ share price fell by over 40% after a short-seller accused the company of manipulating its numbers. That crisis attracted the attention of Brookfield, a leading player in the private equity industry. Brookfield wanted to acquire Grifols until it dropped the bid in November.
Kering’s share price fell by over 40% during the year. The company continued to report weak sales due to the performance of its Gucci brand in China. It has become one of the worst-performing luxury group companies, shedding billions of dollars in value.
Vestas Wind shares fell by 53% as woes in the wind energy industry continued. It has now dropped by almost 70% from its highest level during the pandemic. This performance differed with that of Suzlon Energy, whose shares rose by over 1,000% from the lowest point in 2022.
The other top laggards in the Euro Stoxx 600 index were Abrdn, John Wood, Rio Tinto, Capita, Tullow Oil, Croda, and Spirax-Sarco Engineering.
Stoxx 600 index analysis
The weekly chart shows that the Stoxx 600 index, which tracks the biggest companies in Europe, jumped to a record high of €526. Since April this year, it has remained between the support and resistance levels at €495 and €526.
The index has remained above the ascending trendline that connects the lowest swings since October 2022. It iis also above the support at €495, the previous all-time high.
The Stoxx 600 index has remained above the 50-week and 100-week moving averages. It has also formed an inverse head-and-shoulders pattern, a popular bullish sign. Therefore, the stock will likely have a bullish breakout in 2025. This move will be confirmed if it rises above the year-to-date high of €530. If this happens, the next point to watch will be €550.
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