Adverse session for Russel 2000which ended the day on Tuesday, June 4, with notable falls in 1.25%until the 2,033.94 points. He Russel 2000 reached the maximum number of 2,050.39 points and a minimum volume of 2,032.14 points. The trading range for the Russel 2000 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.89%.
If we consider the data from the last week, the Russel 2000 marks a decrease in 1.59%%; although in year-on-year terms it still maintains . He Russel 2000 is located a 4.26% below its maximum of this year (2,124.55 points) and a 6.31% above its minimum valuation so far this year (1,913.17 points).
A stock index It is an indicator that measures the evolution of the price of a set of assetsso it takes data from different companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of each country and each of them can be integrated by companies with certain characteristics such as having a similar market capitalization or belonging to the same type of business, in addition, there are some indices that only consider a handful of shares to determine their value or others that consider hundreds of shares.
Stock market indices serve as indicator of stock market confidence, business confidence, health of the national and global economy, and stock investment performance and shares of an entity. If investors do not have confidence, stock prices would tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make a comparison between profitability and risk; measure the opportunities of a financial asset or create portfolios.
This type of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. observed carefully how company shares tended to rise or fall in price together, so he created two indices: one that contained the 20 most important railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses
Currently there are various indices and They can join together based on their geography, sectors, company size or also the type of asset.For example, the US Nasdaq index is made up of the 100 largest companies largely 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).
Each stock index has its own way of being measured, but the main component is the market capitalization of each company that comprises it. This is obtained by multiplying the day’s value of the share in the corresponding stock market by the total shares that are in the hands of investors.
Companies that are listed on the stock market are required to present a balance of its composition. Said report must be published every three or six months, as the case may be.
Reading a stock index also involves analyzing its changes over time. Current 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 inaccuracies.
If one index grows 500 points in one day, while another only gains 20, it might appear that the first index performed better. But, if the first started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the second were more important.
Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jonesof which 30 companies are part., the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, it is necessary to mention the Nasdaq 100which associates 100 of the largest non-financial firms.
On the other hand, the most notable indices of Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. On the other hand, the DAX 30, the main German index that contains the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he CAC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In Asiathe main stock indices are the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which appears as the main one in China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about Latin Americayou have the CPIwhich contains the 35 most consolidated firms on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of magnate Carlos Slim.
Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP from Colombia; he IBC of Caracas, made up of 6 companies from Venezuela.
Likewise, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, there is the MSCI World, which includes 1,600 companies from 23 developed countries; he MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P Global 100made up of the 100 most powerful multinational firms on the entire planet.
