German stocks climb: DAX opens higher on March 14

Bullish open for the DAXwhich begins the day on Tuesday, March 14 with slight increases in the 0.39%until the 15,017.52 dots, after opening. If we compare the figure with the previous days, the DAX interrupts the negative market price streak of the last two sessions.

If we consider the data of the last seven days, the DAX records a decrease of 3.48%; but for a year he still accumulates an increase of 3.76%. He DAX is located 4.06% below its maximum this year (15,653.58 points) and a 6.74% above its floor rate for the current year (14,069.26 points).

a stock market index is an indicator that shows how the value of a certain set of assets is changingit therefore takes data from different companies or sectors of a part of the market.

These indicators are mainly used by the exchanges of the countries and each of them can be integrated by companies with different specificities such as having a similar market capitalization or belonging to the same industry, furthermore, some indices only consider a handful of stocks to determine their value or others which consider hundreds of stocks.

Stock market indices serve as indicator of confidence in stock market, business confidence, health of national and global economy and stock investment performance and shares of a company. If investors are not confident, stock prices tend to fall.

They are also working to measure the performance of an asset manager and they allow investors to compare profitability and risk; measure the opportunities of a financial asset or create portfolios.

These types of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. carefully observed how the stock prices of companies tended to rise or fall together, so he created two indices: one containing the 20 largest railway companies (since this was the largest industry in the world). era), as well as 12 shares of other types of companies

There are currently various indices and They can associate according to their geographical location, sectors, size of the company or even the type of asset.For example, the American Nasdaq index is made up 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).

Each stock index has its own way of being measured, but the main factor is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the bond in the corresponding stock market by the total number of shares outstanding in the market.

Listed companies are required to present a balance sheet of its composition. This report must be issued every three or six months, as the case may be.

Reading a stock market index also requires taking into account its evolution over time. Current indices always appear with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can lead to failures.

If one index adds 500 points in one day, while another only adds 20, it may seem that the former has performed better. However, 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 of the second were more remarkable.

Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, of which 30 companies are part. Likewise, the S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally comes the Nasdaq 100which associates 100 of the largest non-financial companies.

On the other hand, the most important indices of Europe are the Euro Stoxx 50, which covers the 50 largest companies in the euro area. On the other hand, the DAX 30, the main German index containing the most outstanding companies on the Frankfurt Stock Exchange; there FTSE100 the London Stock Exchange; he CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock exchange.

In the asian continentthe main stock market indices are the Nikki 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also SSE composite index, which can be considered the most representative of China, consisting of the most important companies of the Shanghai Stock Exchange. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

As it concerns Latin Americayou have the IPCwhich contains the 35 Most Outstanding Companies on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of tycoon Carlos Slim.

Another is the Bovespa, composed of the 50 most important companies of the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP Columbia; he IBC of Caracas, made up of 6 companies from Venezuela.

Finally, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies from Brazil, Chile, Colombia, Mexico and Peru.

Likewise, there is MSCI World, which brings together 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 corporations on the entire planet.