good opening for him DAXwhich begins the session on Friday March 17 with increases of 0.9%until the 15,101.52 points, after the start of the opening session. Regarding the previous dates, the DAX Accumulate two consecutive download sessions.
If we consider the data of the last seven days, the DAX note a decrease of 2.12%; On the contrary, over the last year, it still accumulates an increase of 5.56%. He DAX is located at 3.53% below its maximum this year (15,653.58 points) and a 7.34% above its minimum price so far this year (14,069.26 points).
a stock market index is an indicator that measures the change in value of a given set of assetsSo you need to have data from different companies or sectors in a market fragment.
These indicators are mainly used by the exchanges of the countries and each of them can be integrated by companies with specific needs 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 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. Generally, if investors are not confident, stock prices tend to fall.
They are also working to measure the performance of an asset manager and 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. To carefully study how company stocks tended to rise or fall together, he created two indices: one that contained the 20 largest railway companies (as it was the largest industry at the time) , as well as 12 shares of other types of companies
Today there are various indices and They can agglomerate according to their location, their sectors, the size of the company or the type of assetFor 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 calculation method, but the main component is the market capitalization of each company that incorporates it. This is obtained by multiplying the value of the share on the corresponding stock market by the total number of shares that are on 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 being attentive to its evolution over time. New indices always start with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be misleading.
If one index increases by 500 points in one day, while another adds only 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, we see that as a percentage, the gains of the second were higher.
Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, made up of 30 companies. Likewise, the S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must mention the Nasdaq 100which includes 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 Asiawe have the Nikki 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also SSE composite index, which is listed as 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 the Latin American regionyou have the IPCwhich contains the 35 most influential companies 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, 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.
Similarly, 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.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.
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