Top 5 European stock indices

European Stock Indices: Status and Trends
  • Jonathan Rowe
  • 31.10.2023

Stock indices are important market barometers, as they can be used to judge the development of entire economic regions and industries. With the help of indices, investors can make broad investments in a particular market.

Ibex-35

The Spanish stock market index Ibex-35 is included in the list of leading European indices. It is considered to be one of the most reliable indices in the territory. It includes 35 of the most important companies in Spain. Among them: Banco Santander, BBVA or Telefónica, among others. It was created by the Spanish Stock Exchange (BME) to show the state of the stock market. In addition, this indicator serves as a benchmark to assess the economic development of the country.

Eurostoxx 50

Eurostoxx 50 is considered one of the most important European stock market indices. It includes 50 of the most important companies in Europe. These companies belong to 19 different sectors, which, in turn, belong to 12 Eurozone countries. Spain, France, Holland, Italy, Belgium, Finland and other countries have the highest weighting among them. Companies included in the index include: AXA Group, SAP, Unilever, Banco de Santander and Daimler.

Dax 30

Dax 30 is an abbreviation of the name Deutscher Aktienindex, it can also be heard under the abbreviation Xetra Dax or Ger 30. It is an index of the German stock market. This index serves as a benchmark for the Frankfurt Stock Exchange, known as the Frankfurter Wertpapierbörse, which at the same time is defined as the official secondary market.

Cac 40

This index serves as an indicator for the French stock market. The number 40 means that it consists of the 40 companies with the largest market capitalization in France. One of the features that distinguish it from other European stock market indices is that a significant part of the companies included in the index are foreign: 45% of shares are owned by foreign companies. The largest share belongs to Germany - 21%. The remaining shares are distributed among British, Japanese and American companies.

FTSE 100

FTSE 100 stands for Financial Times Stock Exchange. In common parlance it is called Footsie 100. This index is used for comparison with the London Stock Exchange index. It includes 100 of the most significant in terms of capitalization of companies in the country. The index started in 1984 with 1000 companies and over the years it has shrunk to its current level. Currently, the capitalization of companies is 70%.

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