The FTSE 100 is gaining ground to complete operations higher on October 3rd
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positive day for FTSE 100 (UK)which ended on Monday, October 3rd with slight increases 0.22%until 6,908.76 points. That FTSE 100 (UK) marks a maximum volume of 6,923.75 points and a minimum volume of 6,797.37 points. The trading range for FTSE 100 (UK) between its highest point and its lowest point (maximum-minimum) on that day 1.83%.
In terms of profitability over the past seven days, the FTSE 100 (UK) marks a burglary 1.6%so it still maintains a year-on-year decline of 2.81%. That FTSE 100 (UK) stands a 9.95% below its high for the year so far (7,672.40 points) and a 0.39% above its year-to-date minimum price (6,881.60 points).
Stock market indices… for what?
a stock index It is an indicator that shows how the price of a specific group of assets is changingi.e. collects data from different companies or sectors of a sub-market.
These indicators are mainly used by the stock markets of different countries around the world and each of them can be integrated by companies with specific characteristics B. a similar market capitalization or belonging to the same type of company, there are also some indices that only consider a handful of stocks to determine their value, or others that consider hundreds of stocks.
Stock market indices serve as Indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in stocks and shares in a company. When investors lack confidence, share prices tend to fall.
They also work to measure that performance of an asset manager and enable investors to compare risk and return; measure the chances of a financial asset or create portfolios.
This type of indicator was used at the end of the 19th century Journalist Charles H. Dow. carefully analyzed how company stocks tended to rise or fall together in price, so he created two indices: one with the 20 largest railroad companies (since it was the largest industry at the time) and 12 actions of other types of companies
Today there are various indices and can be assigned based on their location, industry, company size, or type of assetsFor example, the US Nasdaq Index consists of the 100 largest companies primarily 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).
How is it calculated and how do you read it?
Each stock index has its own calculation method, but the main component is the market capitalization of each company it integrates. This is obtained by multiplying the daily value of the bond on the relevant stock exchange by the total number of shares on the market.
Listed companies are obliged to do so present a balance its composition. This report must be published every three or six months, as required.
Reading a stock index also requires observing its changes over time. New indices always open with a fixed value based on the prices of the securities on your start date, but not everyone follows this method. Therefore, misunderstandings can arise.
If one index adds 500 points one day while another only adds 20 points, it might appear that the first index has outperformed. However, if the former started the day at 30,000 points and the other at 300 points, it can be assumed that the percentage gains for the latter were more significant.
What are the major stock indices?
Between major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, which consists of 30 companies. Likewise the S&P500, composed of 500 of the largest companies on the New York Stock Exchange. Finally, it is worth mentioning Nasdaq100which brings together 100 of the largest non-financial companies.
On the other hand, the most outstanding indices are from Europe are the Euro Stoxx 50, covering the 50 largest companies in the eurozone. On the other hand, the DAX30, the main German index containing the best-known companies on the Frankfurt Stock Exchange; the FTSE100 from the London Stock Exchange; the acc 40 the Paris Stock Exchange; and the Capricorn 35the Spanish stock exchange.
in the the Asian continentWe have that Nike 225, composed of the 225 largest companies on the Tokyo Stock Exchange. There are those too Composite SSE Index, which appears as the most representative in China, composed of the most relevant companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the COSPI in South Korea.
Talk about Latin Americayou have the CPIwhich contains at 35 Most Consolidated Companies of the Mexico Stock Exchange (BMV). At least a third of it belongs to magnate Carlos Slim.
Another is the Bovespa, composed of the 50 most important companies on the São Paulo Stock Exchange; the merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC from Caracas, composed of 6 companies from Venezuela.
Likewise, there are other types of global stock indices such as MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, there are MSCI world, which includes 1,600 companies from 23 developed countries; the MSCI Emerging Markets, composed of more than 800 companies from developing countries; and the S&P Global 100composed of the 100 most powerful multinational companies in the world.