Bad day for EuroStoxx 50which closed on Friday, September 23 with big drops in 2.31%to the 3,348.14 points. The IS EuroStoxx 50 marked maximum volume of 3,427.14 points and a minimum of 3,330.10 points. The trading range for EuroStoxx 50 between the highest point and the lowest point (maximum-minimum) during this day stood at 2.83%.
If we consider the details of the last seven days, the EuroStoxx 50 recorded a decrease i 4.35%so that there will always be a fall in year-on-year terms 16.22%. The IS EuroStoxx 50 one stands 23.77% below its maximum level so far this year (4,392.15 points)
Stock market indices… what?
stock index it is an indicator that measures how the value of a certain set of assets developsif it collects data from different companies or sectors of the market.
These indicators are mainly used by the stock exchanges of countries and each of which can be integrated with signatures with certain characteristics such as having a similar market capitalization or belonging to the same industry, likewise, there are some indexes that only take into account a handful of shares to determine their value or others that consider hundreds of shares.
Stock market indices act as an indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in shares and company shares. In general, if investors lack confidence, share prices tend to fall.
They also work for the asset manager performance and enable investors to compare profitability and risk; the opportunities of measuring a financial asset or creating portfolios.
This type of indicators began to be used at the end of the 19th century after journalist Charles H. Dow. carefully analyzed how company stocks tended to go up or down together in price, so he created two indexes: one containing the top 20 railroad companies (since it was the largest industry at the time), as well as 12 actions of other types of businesses.
Today in our economy there are various indices and it can be aggregated based on geographic location, sectors, company size, or even asset typeFor example, the US Nasdaq index consists of the 100 largest companies mainly related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).
How is a stock index measured?
Each stock index has its own way of measurement, but the main factor is the market capitalization of each company that integrates it. This is obtained by multiplying the day’s value of the share in the corresponding stock market by the total number of shares in circulation in the market.
Businesses listed on the stock exchange are required to present a balance of its composition. That report must be disclosed every three or six months, as the case may be.
To read a stock index is to note its changes over time. New indices always start with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can lead to inaccuracy.
If one index gains 500 points in one day, and another index adds only 20, it may appear that the first index has outperformed. However, if the first day started at 30,000 points and the next day at 300, it can be assumed that, in percentage terms, the gains for the latter were greater.
These are the main stock indices
Between the major US stock indexes There is the Dow Jones Industrial Average, better known Dow Joneswhich consists of 30 companies., the S&P 500, including 500 of the largest companies on the New York Stock Exchange. Finally, it is necessary to mention the 100 headswhich connects 100 of the largest non-financial firms.
On the other hand, the most important indexes of Europe is the Eurostoxx 50, covering the 50 largest companies in the eurozone. In addition, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock market.
I continent of Asiathe IS Nikkei 225, comprising the 225 largest companies on the Tokyo Stock Exchange. The IS SSE Composite Index, which is listed as the preponderant of China, consists of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Index Seung in Hong Kong and the KOSPI in South Korea.
Talking about it Latin Americathe IS IPCin which swelling Top 35 companies of the Mexican Stock Exchange (BMV). At least a third of them are owned by magnate Carlos Slim.
Another is the bovespa, composed of the 50 most important companies on the São Paulo stock exchange; the Merval from Argentina; the IPSA From Chile; the COLCAP MSCI from Colombia; the IBC de Caracas, made up of 6 companies from Venezuela.
Likewise, there are other types of global stock market indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, the MSCI World, including 1,600 companies from 23 developed countries; the MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P World 100made up of the 100 most powerful multinationals in the world.
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