Adverse session for Russel 2000which closed the session on Monday, December 23 with slight decreases in 0.22%until the 2,237.44 points. He Russel 2000 marked a maximum of 2,241.91 points and a minimum volume of 2,219.42 points. The trading range for the Russel 2000 between its highest and lowest point (maximum-minimum) during this day it stood at the 1%.
Regarding the last seven days, the Russel 2000 accumulates a decrease in 5.27%; However, in year-on-year terms it still accumulates . He Russel 2000 is located a 8.38% below its maximum of this year (2,442.03 points) and a 16.95% above its minimum valuation of the current year (1,913.17 points).
A stock index It is an indicator used to show the evolution of the price of a set of assetsfor which you need to have data from several companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of each country and each of them can be integrated by companies with different specificities such as having a similar market capitalization or belonging to the same type of business, 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 market indices serve as indicator of stock market confidence, business confidence, health of the national and global economy, and stock investment performance and shares of a company. Generally, if investors lack confidence, stock values tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make comparisons between profitability and risk; measure the opportunities of a financial asset or create portfolios.
This type of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. observed carefully how company shares tended to rise or fall in price together, so he created two indices: one that contained the 20 most important 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 congregate based on geography, sectors, company size or even asset type.For 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 calculation methodbut the main factor is the market capitalization of each company that comprises it. This is obtained by multiplying the daily value of the bond in the corresponding stock market by the total number of shares that are in circulation in the market.
Firms that are on the stock market are obliged to present a balance of its composition. Said report must be disclosed every three or six months, as appropriate.
Reading a stock index also means being careful about its variations over time. Current indices always open with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it may seem misleading.
If one index increases 500 points in a day, while another only adds 20, it might appear that the first one performed better. However, if the first started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the second were more notable.
Among the main US stock indices There is the Dow Jones Industrial Average, better known as Dow Joneswhich is made up of 30 companies. Likewise, the S&P 500which includes 500 of the largest companies on the New York Stock Exchange. Finally, there appears Nasdaq 100which associates 100 of the largest non-financial firms.
On the other hand, the most important indices of Europe are the Eurostoxx 50which covers the 50 most important companies in the eurozone. Furthermore, the DAX 30the main German index that contains the most outstanding companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he CAC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In the asian continentwe have the Nikkei 225made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Indexwhich appears as the most representative of China, made up of the most prominent companies on the Shanghai Stock Exchange. Likewise, it is worth mentioning the Hang Seung Index in Hong Kong and KOSPI in South Korea.
With regards to Latin Americayou have the CPIwhich contains the 35 most powerful firms on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon Carlos Slim.
Another is the Bovespamade 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 of Caracas, made up of 6 companies from Venezuela.
Also, 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 is the MSCI Worldwhich includes 1,600 companies from 23 developed countries; he MSCI Emerging Marketsmade 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.
