The best reflection of funds chasing value stocks: Healthcare and finance leading the way in Europe, while luxury goods and automobiles dragging down the French and German stock markets.

Originally expected to be led by the recovery of the automobile and luxury brand, French and German companies are now facing increasingly severe risks. Statistics compiled by Bloomberg Intelligence show that market expectations for the profitability of the French CAC 40 Index and German DAX Index, which have repeatedly hit historical highs this year, continue to decline for next year, while profit expectations for other regional benchmark stock indices in Europe are on the rise. This explains why the French and German benchmark stock indices, which hit new highs in the first half of the year, have been continuously declining since October, while other European benchmark stock indices are still on an upward trajectory. It is understood that compared to the Swiss SMI Index with a high healthcare sector weighting and the Spanish IBEX Index dominated by the financial sector, the French and German benchmark indices have a higher weight in non-essential consumer goods and industrial sectors. These two industries may find it difficult to fully meet the high expectations of the market next year. On the other hand, the healthcare and financial sectors, which have long been the strong performing sectors in the stock market, have recently seen analysts' expectations for the Swiss and Spanish markets continue to rise, leading to strong performance in the Swiss and Spanish stock markets in November, outperforming the French and German benchmark stock indices as well as the European stock market benchmark indices the Stoxx 600 Index.