This year the markets have registered a constant volatility. (Infobae)

Bullish day for the nikkei 225which ended on Tuesday, April 18, with slight increases in the 0.52%until the 28,664.35 points. He nikkei 225 scored the highest number of 28,698.22 points and a minimum volume of 28,520.76 points. The trading range for the nikkei 225 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.62%.

In the last week, the nikkei 225 accumulates an increase of 2.65%so that in year-on-year terms there is still a rise in 6.78%. and a 11.46% above its minimum price for the current year (25,716.86 points).

a stock index It is an indicator that shows how the value of a set of assets changesso it collects data from various companies or sectors of a part of the market.

These indicators are used mainly by the stock markets of various countries and each of them can be integrated by companies with specific requirements such as having a similar market capitalization or belonging to the same industry, likewise, there are some indices that only take into account a handful of shares to determine their value or others that consider hundreds of shares.

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

They also work to measure the performance of an asset manager and they allow investors to be able to compare between 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 analyze how the shares of companies tended to rise or fall together in price, he created two indices: one that contained the 20 largest railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses

Today there are various indices and They can unionize based on their geography, sectors, company size or even the type of assetFor example, the US Nasdaq index is made up of the 100 largest largely technology-related companies 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 calculating, but the main factor is the market capitalization of each company that integrates it. This is obtained by multiplying the daily value of the share in the corresponding stock market by the total number of shares that are in circulation in the market.

Firms listed on the stock market are required to present a balance of its composition. Said report must be made public every three or six months, as appropriate.

Reading a stock index also requires examining its evolution over time. Current indices always appear with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be a source of misunderstandings.

If one index boosts by 500 points in one day, while another only adds 20, it might appear that the former outperformed. But, if the former started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the latter were larger.

Between the main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Also, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, the Nasdaq 100which brings together 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 largest companies in the euro area. Also, the DAX 30, the main German index containing the most outstanding companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he ACC 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, which can be considered the most notable in China, made up of the most relevant companies on the Shanghai Stock Exchange. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about the latin american regionyou have the CPIwhich contains the 35 most outstanding firms of the Mexican Stock Exchange (BMV). At least a third of them are owned by 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 de Caracas, made up of 6 companies from Venezuela.

Also, there are 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.

Similarly, there is 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.

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