What's Hot, What's Not: Europe and Commodities Lead While India And UK Smallers Struggle [Sector Edition]

What’s Hot

• Europe takes charge, topping the hot list both big and small. Sentiment is clearly improving with major indices in Germany and France both up about 8% over the month.
• Commodities had a strong month as metals and in particular gold stole the show by hitting all-time highs. It’s now on track for its biggest gain since March 2024.
• US Smallers had a solid month, holding their ground despite some jitters around China’s DeepSeek AI release and its implications for US tech.

What’s Not

• UK Smallers and India were the only negative sectors over the past month.
• India falls flat as the worst performing sector. Many view this as a healthy correction after a strong run in 2024.
• UK Smallers struggled and lag their large cap peers in the FTSE 100 which hit record highs. As is often the case, smaller companies can be slower to move early in a bull market but can close the gap quickly once momentum builds.
• Fixed Income offers little excitement but still made some steady gains over the month.

What’s Hot

What’s Not