Here are the TOP-7 indices of the European stock market. FTSE 100 (Financial Times Stock Exchange) is the main UK index. This stock indicator includes one hundred shares with the highest capitalization on the London Stock Exchange. The FTSE 100 is a capitalization-weighted index, revised on a quarterly basis, calculated since 1984. It includes companies operating in more than 150 countries around the world. For a stock to be listed in the UK index, the market capitalization of the company must exceed £ 4 billion, while the capitalization of the index itself exceeds £ 2 trillion. In the FTSE 100, approximately 40% is occupied by companies from the financial sector, retail, media, tourism and entertainment. The industrial sector is in third place.
DAX (Deutscher Aktienindex) is a key index of the German stock market, calculated since 1988. It includes
thirty of the most liquid stocks of the largest companies.The DAX is a market capitalization-weighted index of
the free float, rebalanced quarterly and revised annually. One stock cannot occupy more than 10% of the index.
For a stock to be included in the index, one of two conditions must be met:
- the head office of the issuing company is located in Germany;
- the main turnover of the issuer's stocks falls on the Frankfurt Stock Exchange, and the company's head office is located in the European Union or the European Free Trade Association.
CAC 40 (Cotation Assistee en Continu) is the main index of the French stock market, calculated since 1987. Includes forty stocks listed on the Euronext Paris exchange. The index is weighted by the market capitalization of the stocks in free float. The largest sectors are industrial goods and services, healthcare, and the oil and gas industry.
The composition of CAC 40 is reviewed on a quarterly basis. The free float stocks included in the index are revised annually. One stock cannot occupy more than 15% of the index.
SMI (Swiss Market Index) is the main index of the Swiss Stock Exchange, and includes the stocks of the 20 largest companies, whose stocks are traded on the Swiss Stock Exchange. The SMI has been calculated since 1988 and represents over 85% of the Swiss stock market. The composition of SMI is reviewed once a year.
Euronext 100 is an index of the 100 most capitalized companies listed on the Euronext exchange. The share of a particular stock is determined on the basis of market capitalization and cannot exceed 10%. A limitation is imposed on liquidity: for each asset, the velocity of circulation should not be lower than 20%.
OMX S30 (OMX Stockholm 30) is a key index of the Stockholm Stock Exchange. The 30 largest companies in terms of capitalization participate in the quotes. OMX S30 has been calculated since 2004.
Euro Stoxx 50 - this index includes the fifty largest companies in the Eurozone from 19 sectors of the economy. France and Germany have the largest weight in Euro Stoxx. These countries account for almost 70% of the index's market capitalization.
Indeed, the presented indices are not the only ones in Europe, - as each stock exchange has at least one stock index, while some of them have index groups. Nevertheless, the most informative financial indicators are presented here.