Bearish day for the EuroStoxx 50which ended the day on Thursday, June 27 with slight decreases in 0.28%until the 4,902.09 points. He EuroStoxx 50 reached a maximum volume of 4,935.11 points and a minimum of 4,897.18 points. The trading range for the EuroStoxx 50 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.77%.
Regarding the last week, the EuroStoxx 50 accumulates a drop in 0.92%%; Despite this, for a year it still maintains an increase in 11.64%. He EuroStoxx 50 is located a 3.9% below its maximum so far this year (5,100.90 points) and a 11.33% above its minimum price of the current year (4,403.08 points).
A stock index It is an indicator that is used to know the evolution of the price of a certain set of assets.for which it uses data from several companies or sectors of a part of the market.
These indicators are used mainly by the stock exchanges of various nations and each of them can be integrated by firms with certain characteristics such as having a similar market capitalization or belonging to the same industry. 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 a company. Generally, if investors lack confidence, stock values 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 journalist Charles H. Dow. He looked closely at how company stocks tended to rise and fall in price together, so he created two indexes: one containing the 20 largest railroad companies (since it was the most important industry at the time), as well as 12 stocks from other types of businesses.
Today in humanity there are various indices and They can be associated based on their geography, sectors, company size or also the type of assetFor example, the American 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 way of calculatingbut the main component is the market capitalization of each company that makes it up. This is obtained by multiplying the value of the share on the corresponding stock exchange on the day by the total number of shares that are on the market.
Companies that appear on the stock exchange are required to present a balance of its composition. Said report must be notified every three or six months, as the case may be.
Reading a stock index also means taking into account 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 failures.
If one index grows 500 points in a day, while another only adds 20, it might appear that the first one performed better. But, if the first started the day at 30,000 points and the other at 300, it can be concluded that, in percentage terms, the gains for the second were more important.
Between the Major stock market indices in the United States There is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Likewise, the S&P 500which includes 500 of the largest companies on the New York Stock Exchange. Finally, there is the Nasdaq 100which unites 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 most outstanding 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 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 the latin american regionyou 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.
There are also 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, 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.
