List of Global Indices

Global indices are used to determine the total market’s strengths or weaknesses. An indice is often created by picking a group of highly liquid and valued stocks from the universe of publicly listed stocks. The movement of global indices is defined as the weighted movement of these stocks or portfolios of equities. If global indices rise, it suggests that markets are strong; if they decrease, it indicates that markets are weaker.

What are Global Indices?

Global indices can be thought of as a fictional investment portfolio that reflects a sector of the financial market (or the global indices market). The underlying stocks or assets in the index are used to calculate the index value.

Stocks, bonds, commodities, and other assets make up the global indexes market. Indices can be weighted in a number of different ways. There are indices based on market capitalization weighting, revenue weighting, float weighting, and fundamental weighting as an example, in the global indices market. The majority of the world’s prominent indices are weighted by market capitalization and free float.

Methodology of Global Indices

Global indices have their special method for computing the index value, which is based on the authoritie’s approval known as the index committee’s approval. All index calculations are mostly based on weighted average mathematics. Several indices began as price-weighted indices, but as days progressed on, they moved to market cap-weighted indices to ensure that smaller stalks did not have a big impact on indices. In today’s world, free-float weighted indices are in majority. To present a more accurate view, the market cap of the promoter interests is removed when calculating the market cap for weighting. One objection is that market-capitalization-weighted indices will be considered to price fluctuations in the major shares, just like the way it is accepted.

List of Global Indices

Here is a list of global indices which are popular and tracked indices of the world.

1.US MARKETS

The stock, bond, and currency markets of the United States are the largest in the world because of the scale of the US economy and the highly regulated nature of US markets.

• NASDAQ

Since its introduction in 1985, the Nasdaq-100 has been a large-cap growth index consisting of 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. The Nasdaq-100 index includes some of the world’s most creative firms, including Apple, Microsoft, Starbucks, Google, Intel, and Tesla.

2.EUROPEAN MARKETS

In trade, it refers to the European Union’s (EU) single market, in which products and services are freely exchanged among individual countries and which has a common trade policy with non-EU countries.

• FTSE

The Financial Times Stock Exchange 100 Index, commonly known as the FTSE 100 Index, FTSE 100, FTSE, or, informally, the “Footsie,” is a share index consisting of the 100 largest businesses listed on the London Stock Exchange (LSE). The FTSE Group, a part of the London Stock Exchange Group, maintains the index.

• CAC

The CAC 40 is a French stock market index that serves as a benchmark. As the title indicates, the index consists of the 40 most significant values among the top 100 market capitalizations on the Paris Bourse (which has now been renamed Euronext Paris). 

• DAX

German Stock Exchange Index The DAX 30 was previously known as the Deutscher Aktien IndeX 30. It is made up of the 30 largest German corporations that trade on the Frankfurt Stock Exchange. The DAX 30 was created on December 30, 1987, with a base value of 1000. Prices are provided through the electronic Xetra trading system. It computes the index once every minute.

3.ASIAN MARKETS

• SGX NIFTY

The Singapore Exchange Limited (SGX) is a Singapore-based investment holding firm that offers a variety of services connected to securities and derivatives trading, among other things. The SGX is a member of the World Federation of Exchanges as well as the Asian and Oceanian Stock Exchanges Federation.

• NIKKEI

The Nikkei, formally The Nihon Keizai Shimbun (Japan Economics Newspaper), is the main journal of Nikkei, Inc. (headquartered in Tokyo) and the world’s biggest financial newspaper, with a daily distribution of over three million. Since 1950, the newspaper has calculated the Nikkei 225, a stock market index for the Tokyo Stock Exchange.

• STRAITS TIMES

The Straits Times Index (STI) is a capitalization-weighted measurement stock market index that is widely considered as the benchmark index for the Singapore stock market. It monitors the performance of the top 30 Singapore Exchange-listed companies (SGX).

• HANG SENG

The Hang Seng Index (HSI) is a Hong Kong stock market index that is free float-adjusted and market-capitalization-weighted. It is the major indicator of Hong Kong’s total market performance and is used to record and track daily changes in the largest businesses on the Hong Kong stock exchange.

• TAIWAN WEIGHTED

The Taiwan Stock Exchange Corporation (TWSE) is a financial institution based in Taipei, Taiwan, at Taipei 101. The TWSE was founded in 1961 and became a stock exchange on February 9, 1962. The Financial Supervisory Commission handles TWSE.

• KOSPI

The Korea Composite Stock Price Index, or KOSPI (), is an index of all common equities traded on the Korea Exchange’s Stock Market Division formerly known as the Korea Stock Exchange. It is South Korea’s stock market index, similar to the S&P 500 in the United States.

• SET COMPOSITE 

The SET Index is a Thai composite stock market index created using the prices of all common stocks including unit trusts of property funds traded on the main board of the Stock Exchange of Thailand (SET), excluding stocks that have been halted for even more than 12 months.

• JAKARTA COMPOSITE

Before merging with the Surabaya Stock Exchange to form the Indonesia Stock Exchange, the Jakarta Stock Exchange (JSX) (Indonesian: Bursa Efek Jakarta (BEJ)) was a stock exchange in Jakarta, Indonesia.

• SHANGHAI COMPOSITE

The SSE Composite Index, often known as the SSE Index, is a stock market index that includes all equities (A and B shares) trading on the Shanghai Stock Exchange.

The Global Indices keep on changing according to the flow of trades and are changed to keep the section relevant to the basic description, as well as to reflect company activities like mergers and acquisitions and new listings while individual companies may fluctuate in terms of market capitalization or liquidity.

Conclusion

This article mainly concentrates on making students understand the basic knowledge of Global Indices and various countries included in it. The working of the Global Indices and its methodologies help us understand the trading which takes place in the stock market. The top Global Indices are from the US Markets, Asian Markets, and EU Markets. The Global Indices keep on fluctuating according to the trading in the market.