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

Positive opening of the day for the nikkei 225which begins on Monday, April 10 with increases of 0.75%until the 27,724.83 points, after the start of the opening session. Analyzing this data with that of previous days, the nikkei 225 add two sessions in a row in positive figures.

In relation to the profitability of the last seven days, the nikkei 225 accumulated a decrease in 1.64%for this reason, since a year ago, it still maintains a drop in 0.23%. He nikkei 225 a 3.14% below its maximum so far this year (28,623.15 points) and a 7.81% above its minimum valuation for the current year (25,716.86 points).

a stock index It is an indicator used to show the evolution of the value of a set of assetsSo you need to have data from various companies or sectors of a fragment of the market.

These indicators are used mainly by the stock markets 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 industry, there are also some indices that only consider 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. Generally, if investors are not confident, stock values ​​will tend to fall.

They also work to measure the performance of an asset manager and they allow investors to make a comparison 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

Currently in humanity there are various indices and they can come together based on their geography, sectors, company size or even asset classFor 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 way of being measured, but the main factor is the market capitalization of each firm that integrates it. This is obtained by multiplying the daily value of the security in the corresponding stock market by the total number of shares that are in circulation in the market.

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

Reading a stock index also implies taking into account its changes over time. Current 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 grows 500 points in one day, while another only adds 20, it might appear that the former outperformed. 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 for the second were more remarkable.

Between the main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Also, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, it is necessary to mention the Nasdaq 100which links 100 of the largest non-financial firms.

On the other hand, the most prominent indices of Europe are the eurostoxx 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; 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 the asian continentthe 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 is listed as the most representative of China, made up of the most prominent 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 consolidated firms on the Mexican Stock Exchange (BMV). At least a third of them are part of the patrimony 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 de Caracas, made up of 6 companies from Venezuela.

Finally, 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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