Analysis-Global small-cap stocks lure bargain hunters after sluggish 2023

Shares of smaller companies that have lagged for most of 2023 are drawing investors on both sides of the Atlantic, as they weigh the benefits from an expected fall in interest rates next year against worries about a possible economic downturn. In the U.S., the small-cap Russell 2000 has jumped over 13% from its October lows, while the MSCI Europe Small and Mid Cap Index is up 12% since late last month. While the S&P 500 is up 19% year-to-date, the Russell 2000 has climbed just 5%.