Adverse day for EuroStoxx 50which ended the day on Friday, June 7, with slight decreases in 0.31%until the 5,053.32 points. He EuroStoxx 50 scored a maximum of 5,077.21 points and the minimum number of 5,018.35 points. The trading range for the EuroStoxx 50 between its highest and lowest point (maximum-minimum) during this day it stood at the 1.16%.
Taking into account the last week, the EuroStoxx 50 marks a rise in 1.4%% and in interannual terms it still accumulates an increase of 15.48%. He EuroStoxx 50 is located a 0.93% below its maximum of this year (5,100.90 points) and a 14.77% above its minimum price so far this year (4,403.08 points).
A stock index It is an indicator used to show the evolution of the value of a set of assetsfor which it uses data from different companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of various countries and each of them can be integrated by firms with specific characteristics such as having a similar market capitalization or belonging to the same type of business. Likewise, 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 a company. 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 return 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. carefully analyzed 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 be grouped based on geographic location, sectors, company size or even asset type.For example, the US Nasdaq index is made up of the 100 largest companies mostly 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 calculation method, but the main factor is the market capitalization of each firm that comprises it. This is obtained by multiplying the day’s value of the security in the corresponding stock market by the total number of shares that are in circulation in the market.
Firms that appear on the stock market are required to present a balance of its composition. Said report must be disclosed every three or six months, as the case may be.
Reading a stock index also requires taking into account its changes over time. New indices always start with a fixed value based on security 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 one performed better. However, if the first started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the second were greater.
Between the main US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget the Nasdaq 100which links 100 of the largest non-financial firms.
On the other hand, the most important 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. There is also the SSE Composite Index, is seen as the most notable in China, made up of the most relevant 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 outstanding firms on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon 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.
Also, there are other types of global stock indices such as 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.
