US equity markets have soured in September as reflected by the Russell US indexes, driven in large part by a pullback in the US Technology sector and losses in US technology stocks in recent weeks. The US large-cap Russell 1000® Index, while still up 7.4% in 2020 and 10.5% in the third quarter, has lost 2.8% month-to-date as of US market close on September 15. And the US small-cap Russell 2000® Index is off 1.5% thus far in September, with a 7% gain in the third quarter and a 6.9% loss year-to-date.

From a sector standpoint, Technology has helped contribute to the recent pullback, with a 6.1% and 4.9% decline for this sector in September within the Russell 1000 and Russell 2000 Index, respectively.

Philip Lawlor, managing director, Global Equity Market Research:

“US equity markets have enjoyed a fairly consistent upward trajectory in recent months driven in large part by gains in the high-flying Technology sector, but volatility has been...

 

FTSE Russell has completed the third quarter update for its Russell US Indexes, completing the migration to the enhanced ICB framework and adding 46 new US IPOs. The changes, which impact the US large-cap Russell 1000 Index, small-cap Russell 2000 Index and Russell Microcap Index, became effective after the close of the U.S. equity markets on Friday, September 18th and were reflected today.

Susan Quintin, Head of Equity Index Product Management, Information Services, LSEG:

“We are pleased to provide the new ICB framework to Russell US index clients following a multi-year consultation and enhancement process. This important project combines the best-in-class sector classification framework with the widely-tracked Russell US equity benchmarks and is an important step toward even greater consistency around our global family of equity benchmarks.”

Initially planned to become effective in June during the height of the Covid-19...

The State of Global Equity Markets Through the Lens of FTSE GEIS Chris Vass, Emerald Yau, and Catherine Yoshimoto [[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]] 30 mins

Listed Real Estate: Outlook and opportunities in Europe, US and South East Asia FTSE Russell, EPRA, Nareit, Singapore Exchange (SGX), Nikko Asset Management [[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]] 90 mins

A selection of FTSE Canada bond indexes will now represent the market-based spread component for provincial and investment grade corporate bonds recommended by the Canadian Institute of Actuaries (CIA) in an enhanced commuted value calculation. FTSE Russell Canada was the natural choice by the CIA to represent the Canadian bond market for this calculation. FTSE Russell Canada introduces a new dedicated web page with historical index rates and background information for transparency & education.

By Philip Lawlor, head of Global Investment Research

The decisive rebound in the EPS revision cycle from the pandemic lows in June has provided much of the firepower behind this summer's risk rally. But signs that this uptrend may be losing steam bear watching.

Forecasts still see strong global EPS growth recovery for 2021

As shown in the color-coded chart below, consensus forecasters still look for a robust EPS growth recovery across global markets from this year’s pandemic-stricken profit downturn. Estimates range from the more than four-fold bounceback for the Russell 2000 at the high end (dark green)—off of the steepest profit recessions of any market this year—to the 25% rebound for the FTSE Asia Pacific ex Japan at the low end (dark red).

Consensus EPS growth forecasts (%)—2020 and 2021 vs Jan 2020 estimates

Source: FTSE Russell / Refinitiv. Data as of September 15, 2020. Past performance is no guarantee to future results. Please...

Enhanced data model provides more comprehensive coverage, improved granularity of revenue exposure, and green ‘tiering’ to identify the net environmental impact of company activities FTSE Russell’s green revenues markers now cover 10 sectors, 64 sub-sectors and 133 micro-sectors The Green Revenues Classification System features high overlap with the EU Taxonomy, providing a standard for reporting excellence set to be implemented by the end of 2021 The green economy is worth approximately $4 trillion, representing 6% of the market capitalisation of all global listed companies

Enhanced data model provides more comprehensive coverage, improved granularity of revenue exposure, and green ‘tiering’ to identify the net environmental impact of company activities FTSE Russell’s green revenues markers now cover 10 sectors, 64 sub-sectors and 133 micro-sectors The Green Revenues Classification System features high overlap with the EU Taxonomy, providing a standard for reporting excellence set to be implemented by the end of 2021 The green economy is worth approximately $4 trillion, representing 6% of the market capitalisation of all global listed companies

Enhanced data model provides more comprehensive coverage, improved granularity of revenue exposure, and green ‘tiering’ to identify the net environmental impact of company activities FTSE Russell’s green revenues markers now cover 10 sectors, 64 sub-sectors and 133 micro-sectors The Green Revenues Classification System features high overlap with the EU Taxonomy, providing a standard for reporting excellence set to be implemented by the end of 2021 The green economy is worth approximately $4 trillion, representing 6% of the market capitalisation of all global listed companies

The State of Global Equity Markets Through the Lens of FTSE GEIS Chris Vass, Emerald Yau, and Catherine Yoshimoto [[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]] 30 mins

Enhanced data model provides more comprehensive coverage, improved granularity of revenue exposure, and green ‘tiering’ to identify the net environmental impact of company activities FTSE Russell’s green revenues markers now cover 10 sectors, 64 sub-sectors and 133 micro-sectors The Green Revenues Classification System features high overlap with the EU Taxonomy, providing a standard for reporting excellence set to be implemented by the end of 2021 The green economy is worth approximately $4 trillion, representing 6% of the market capitalisation of all global listed companies

The greening of the global economy presents significant opportunities to investors. However, investors and policymakers face a common challenge: How can green business activities be systematically identified, categorized, and measured across diverse sectors, supply chains and asset classes to mobilize investment at scale? The EU Taxonomy is an ambitious regulatory initiative that aims to address this challenge, with regulation set to come into force in January 2022.

The EU Taxonomy has set out a catalogue of green criteria, leaving markets to assess individual companies against these criteria. This paper explains the need for green taxonomies, summarizes the development of and approaches taken by the EU Taxonomy and the FTSE Russell Green Revenues Classification System (GRCS), and examines the overlaps and points of difference between the two approaches. Crucially, it explains how Green Revenues data model can provide a stepping stone for investors to comply with the...

Industry Classification Benchmark (ICB) is a globally utilized standard for the categorization and comparison of companies by industry and sector. It is the official sector classification used across FTSE Russell indexes for analysis, attribution and performance measurement.

ICB is widely adopted by global institutional clients and has many application use cases:

Enhanced data model provides more comprehensive coverage, improved granularity of revenue exposure, and green ‘tiering’ to identify the net environmental impact of company activities FTSE Russell’s green revenues markers now cover 10 sectors, 64 sub-sectors and 133 micro-sectors The Green Revenues Classification System features high overlap with the EU Taxonomy, providing a standard for reporting excellence set to be implemented by the end of 2021 The green economy is worth approximately $4 trillion, representing 6% of the market capitalisation of all global listed companies

Industry Classification Benchmark (ICB) is a globally utilized standard for the categorization and comparison of companies by industry and sector. It is the official sector classification used across FTSE Russell indexes for analysis, attribution and performance measurement.

ICB is widely adopted by global institutional clients and has many application use cases: