Global stock index

Global the stock market index

Stock index are the determinants of changes in the groups represented. They are one of the basic tools of technical analysis. Technical analysis is based on history, predicting the future based on the past ...

Stock index are the determinants of changes in the groups represented. They are one of the basic tools of technical analysis. Technical analysis is based on history, predicting the future on the basis of the past, and indexes, as a kind of medium, best illustrate the behavior of actions in given time periods.

Obviously, historical stock quotes and these current individual stocks may deviate significantly from the behavior of indexes, so when making investment decisions, looking at index behavior is not enough.

The most popular global stock market index

Investors often take into account not only indigenous index but also global index in their investment activities. The most popular of these are German DAX, British FTSE 100, French CAC 40, Japanese NIKKEI 225 and American DOW JONES, NASDAQ and S & P 500.

US index  are the leading force in creating moods in the stock market, so a few words about them.

US stock index

1. Dow Jones is the most respected and most popular index in the world. It is also the oldest index of the world - was created in 1884. Its specific design makes, despite criticism, the best image of the results of the state of the US economy.

2.The NASDAQ National Market System Index consists of shares representing the following six industries: banking, finance, industry, insurance, transport, public utility. These industries are considered to be the mirror of the general state of the American economy. Stock quotes on the NASDAQ system include more than 31,000 stocks, giving the largest proportion of US stocks.

3.The Standard & Poor's 500 Index (S & P 500) is comprised of five hundred shares listed on the New York Stock Exchange and NASDAQ, which represent the largest market share of all listed stock exchanges. This indicator was developed by Standard & Poor's in 1957. Due to the rigid rules of stock selection and the fact that it is immune to fluctuations in only one market, the S & P 500 has gained enormous popularity among analysts and stock market investors as an extremely useful technical analysis tool.