CAC 40 Trading forecasts and signals

USA: inflation and labor market expectationsToday, traders who prefer forex trading based on the news are focused on two news items from the United States – the ISM industrial business activity index for March and the JOLTs report on the number of vacancies for February. According to forecasts, the ISM index will remain at the level of the previous month, but regional data indicate a possible decline amid trade uncertainty. The Federal Reserve pays special attention to JOLTs data as an indicator of labor demand, which may influence future monetary policy decisions.The Eurozone: inflation and the labor marketPublished inflation data in the leading economies of the eurozone turned out to be mixed: France, Spain and Germany recorded a slowdown, while in Italy inflation turned out to be higher than expected. Overall, the HICP index for the eurozone is likely to decline from 2.3% to 2.1% in annual terms, driven by lower prices for energy and services. Despite this, the ECB remains inclined to lower rates in April. Unemployment data is also expected to be published today, which is projected to remain at 6.2%, indicating the stability of the labor market.Denmark and Sweden: Wages and PMIIn Denmark, data on wage growth in the private sector for the first quarter will be published. In the fourth quarter of 2024, nominal salaries increased by 4.6% year-on-year, providing a 2.9% increase in real incomes. Wage growth is expected to continue in the first quarter of 2025, but will be lower than in the previous year.In Sweden, the PMI index for the manufacturing sector for March is expected to be around 53 points, which corresponds to the level of the last five months. In February, the figure was 53.5, with all components except inventories showing growth, including new orders, production, and employment.Overview of global marketsAsian markets: Central Bank policy and business activityThe Reserve Bank of Australia (RBA) left the key rate at 4.10%, which was in line with expectations. The regulator expressed confidence in a gradual decrease in inflation, but noted the risks of a slowdown in domestic demand. Financial markets have already priced in two or three rate cuts before the end of 2025.In Japan, a quarterly Tankan survey was published, the results of which were mixed. The index of business sentiment of large industrial companies decreased from 14 to 12, which was the lowest value for the year. At the same time, the service sector showed improvement, with the indicator rising from 33 to 35, reaching its highest level since 1991, boosted by increased consumer spending and a record influx of foreign tourists. Inflation expectations in Japan continue to rise, which supports the Bank of Japan's plans to further tighten policy.In China, the Caixin private business activity Index (PMI) in the manufacturing sector rose to 51.2 points (against the forecast of 51.1), which was the highest value since November. The growth was driven by improved demand conditions and an increase in foreign orders to a maximum in 11 months.European markets: inflation and GDPIn Germany, the HICP index dropped to 2.3% year-on-year (versus the forecast of 2.4%), mainly due to falling energy prices (-2.8% versus -1.6% in February). A slowdown in service sector inflation (to 3.4% from 3.8%) may be a key factor for the ECB when deciding on a rate cut.Danish GDP for the fourth quarter of 2024 was revised up to 1.8% QoQ (from 1.6% QoQ in the preliminary estimate), and annual economic growth was 3.7% (+0.1 percentage points to the previous forecast). The pharmaceutical sector continues to make the main contribution to growth, but other industries are expected to become more active in 2025.In Norway, organizations representing the interests of workers in industry have agreed on a 4.4% wage increase in 2025, which is slightly lower than Norges Bank's forecast (4.5%). This confirms the trend towards a slowdown in wage growth, despite a stable labor market, which opens up opportunities for a gradual easing of monetary policy.Stock markets: dynamics and expectationsGlobal stock markets came under pressure again yesterday, but the dynamics differed from previous sessions due to trade wars. In the US, major indexes closed in positive territory: The Dow Jones is up 1.0%, the S&P 500 is up 0.6%, while the Nasdaq is down 0.1% and the Russell 2000 index of small companies is down 0.6%.The growth of the American market was quite broad: 21 out of 25 industry indexes ended the day in positive territory. However, the predominance of defensive sectors indicates that investors prefer safer assets, despite the improvement in sentiment. Volatility (VIX) has increased, even despite the rise of the S&P 500, which signals continued caution.Asian markets are mostly growing today, especially in export-oriented South Korea and Taiwan. European futures are also trading higher, while American futures are showing a decline.Currency and debt marketsThe US bond market ended the day with an increase in yields on the short section of the curve: 2-year US Treasury bonds rose by 5 bps, and the yield on 10-year UST was 4.21%. The rumors about the ECB's tougher stance supported the yield on 2-year German bonds, but did not have a significant impact on the euro exchange rate. The EUR/USD pair gradually declined to 1.08.USD/JPY continues to consolidate near 150.00. The EUR/SEK pair rose to 11.86, partly due to factors related to the end of the month. The Norwegian krone (NOK) initially weakened, but ended the day unchanged against the euro at 11.36. In the future, Scandinavian currencies will react to trade tariff decisions, while the Swedish krona (SEK) may be vulnerable to dividend ...

AUDUSD: The "Aussie" is losing its advantageThe Australian currency was under pressure against the dollar because it was not supported by the macro data during the New Year holidays, testing the 0.6750 level.As it follows from the report for Q3, national tourism sector increased employment by 604.2 thousand vacancies, beating the previous quarter by 18.6 thousand. As for the same period in 2021, the number of workers in the sector increased by 58.7% or 223.5 thousand citizens in numerical terms. Meanwhile, the most positive dynamics was reflected in the catering system, which increased the number of employees by 8.4 thousand, and the hospitality sector reflected a decrease of 1.4 thousand.Support levels: 0.6670 and 0.6520.Resistance levels: 0.6800 and 0.6980.USDTRY: Turkish government to support the lira at the end of the yearThe Turkish currency stays in the price range of 18.7000-18.5000, where it keeps at the expense of the artificial leverage.A week earlier the Turkish financial authorities notified commercial banks to refrain from buying USD in large quantities for the corporate clientele in order to avoid the USD/TRY instrument rising ahead of the end of the year. The regulator has already systematically intervened in transactions related to foreign currencies within the past autumn, putting the priority set by the political elite of the Republic of Turkey, which believes that the national economy can only be stimulated by a mild monetary policy and the record level of inflation is temporary and will disappear from the agenda when the economy recovers.However, the Turkish authorities do not abandon the intention to become a regional dominant of the energy sector, bypassing the Middle East, the Caspian Sea and the Mediterranean to gain independence from imports of foreign resources. Thus, the day before the Turkish leader announced the development and beginning of resource extraction on the new field of "blue" fuel in the Black Sea, the potential of which is estimated at 58.0 billion cubic meters, and in terms of money equivalent - $1.0 trillion. Thus, natural gas production from territorial waters increased to 710.0 billion cubic meters.Support levels: 18.6800, 18.6200.Resistance levels: 18.7400, 18.7850.Oil market analysisThe price of benchmark Brent hydrocarbon failed to cross the psychological threshold of 85.00, moving to a decline at 82.80 as refineries in the Gulf of Mexico resumed operations amid a weakened natural cataclysm. Low temperatures and heavy snowfall caused outages at several refineries, which reduced production of "black gold" and gas from Texas to North Dakota.In addition, the other day Russian President Putin signed a decree which prohibits the supply of raw and derivative products to the markets of countries and organizations which have approved the limit of 60.00 per resource, as a response to continued military action in Ukraine. The deadline for countermeasures on "black gold" is set for February 1 until mid-summer next year, and the timing of measures on petroleum products will be determined shortly. It should be noted that the document contains a prescription allowing the Kremlin leadership to circumvent the ban with special permits at its discretion.Resistance levels: 85.00, 90.50.Support levels: 76.00, 69.70.CAC 40 index analysisThe CAC 40, one of the key indexes of the European zone, is kept in the area of 6483.0 as bonds are strengthening their yields.For example, the popular 10-year paper is positioned at 3.046%, exceeding its yearly peak of 2.998% in October, while the conservative 20-year is at 3.317%, lagging behind its peak of 3.420%. Global 30-year bonds reflect an earnings correction of 3.219% versus October's 3.290%. Contrary to the retreat from the peak, the outlook for the global economy and the likelihood of an impending recession could likely support the paper further, dampening investment demand among high-risk stocks.Meanwhile, France's economic performance continues to come under pressure amid protest movements by the civil service sector seeking a wage bump. Contrary to the agreement previously reached by the authorities and the management of the French railway, about 50% of high-speed trains were cancelled for the Christmas holiday, and employees of the medical sector announced protests until January 2, wanting to achieve an increase in the price of admission by up to 50%.Support levels: 6370.0, 6170.0.Resistance levels: 6580.0, ...

EUR/USD: Euro remains under pressure due to inflationThe current week has shown an active correction of the EUR/USD instrument, which is currently testing the 1.0080 mark, continuing to be under pressure due to rising inflation.According to the data published yesterday, consumer prices in the European Union countries increased the growth rate from the previous 8.6% to 8.9% in July, and the base indicator strengthened to 4.0% from the previous 3.0%. The production indicator in Germany, on the contrary, lost ground to 37.2 against the previous 32.7%. Inflationary pressure in the eurozone countries continues to show moderate but steady growth, which is why tariffs, electricity and food group goods are becoming more expensive. Economists fear that inflation is only gaining momentum and the record peak has not yet been passed, which can be confidently said about the United States, where the released data showed a slight decline in the consumer price index. Meanwhile, the eurozone regulator will have to continue raising interest rates, increasing the risk of a recession in the economy. According to the statement of the ECB board member, Isabel Schnabel, the measures taken are not enough to effectively combat inflation, because the agency will continue to adhere to the policy of "hawks".Resistance levels: 1.0253, 1.0376, 1.0500, 1.0620.Support levels: 1.0009, 0.9887.Overview of the CAC 40 IndexThe French stock exchange is showing bullish dynamics during the trading session on Friday due to the reduction of the domestic bond market. At today's session, one of the key stock indicators of the CAC 40 is trading at the level of 6543.0. The investor was confirmed by the publication of the report of only one brand - Christian Dior SE, which displayed quarterly revenue at around 36.73 billion. the euro, as stated by the consensus forecast earlier. The profitability of the company's shares reached 14.84 euros, reflecting a positive indicator that allowed the securities to strengthen on trading platforms.The domestic bond market continues to develop a global downward correction, and the yield level of popular 10-year government securities amounted to 1.684%, yielding to the July indicator of 1.853%. The long-term segment of 20-year bonds is displayed similarly, the yield of which was 2.082% against the designation in July of 2.287%. The medium-term segment of 3-year bonds showed a yield of 0.98%, 5–year - 1.27%, which is lower than the last placement of 1.00% and 1.47%, respectively.Resistance levels: 6612.0, 6891.0.Support levels: 6424.0, 6074.0.Oil Market OverviewThe cost of North American light WTI grade oil shows flat dynamics, being at the level of 89.60 due to the published data the day before.The central factor creating pressure on the quotes is the situation around the export of "black gold" in Iran. If at the beginning of the summer season, economists were worried about global fuel demand in the context of the resumption of exports of cheap Iranian oil to world markets, now, as extreme publications show, the indicator for March 21 to July 22 shows an increase to the level of 30%, which is displayed numerically 870.0 thousand barrels per day - a record designation among the total the number of companies producing raw materials in the West Asian region. The growth dynamics showed the highest rates since 2018, in which the United States decided to withdraw from the "nuclear deal", while official Tehran's income for oil supplies showed an increase of 481% during the first four months of the calendar year in Iran.Resistance levels: 93.33, 100.00.Support levels: 86.41, 78.55.Cryptocurrency Market OverviewDigital assets are traded under the influence of two opposite factors. The negative trend of the crypto market is indicated by the publication of the final minutes of the last meeting of US Federal Reserve officials, however, the rapid collapse until Friday was held by investors' hopes about the imminent transition of Ethereum to new PoS (Proof-of-Stake) algorithms, which attracted the attention of all traders interested in the cryptosphere. Following the results of Wednesday, the minutes of the meeting of the US financial department were published, confirming the tightening of monetary parameters within the framework of achieving the target inflation rate of 2.0%, therefore there will be no breaks between the increase in the key indicator. During the cyclical tightening of monetary parameters, the US dollar will receive support against alternative instruments. Experts note the truthfulness of the forecasts of the head of Galaxy Digital, Michael Novogratz, who said the day before that the dominance of the "hawks" in the US Federal Reserve will inevitably lead to a correction of the entire segment of digital assets, and BTC quotes will not be able to overcome the resistance level of 30000.00 until the end of this year, but will fluctuate around 20000.00 – 30000.00.The cryptocurrency market ends the current week with an active fall. The collapse of positions occurred during Friday's trading session without any correct factors, because economists can only link the decline in assets with the speculation of "whales". Currently, BTC has reached 21800.00, having lost 11.5%, ETH is testing the 1730.00 mark, having sank by 14.8%, USDT has gained a foothold at 1.0000, having fallen by 0.02%, and BNB is trading at 280.00, whose losses amounted to 12.6%. The valuation of crypto assets decreased to 1.048 trillion dollars, having a BTC share of 40.01% in ...

As of 11.43 Moscow time, the DAX and CAC 40 indices rose by 1.36% and 1.72%, respectively. The FTSE index rose 0.87%. The main European Stoxx Europe 600 index showed an increase of 1.1%. The leaders in the growth rate of the share price among the companies included in this index were operators engaged in food delivery. The reason for the positive on the European stock exchanges was the negotiations between the Russian Federation and Ukraine, which are taking place in Turkey. Investors hope that the participants of this meeting will be able to agree on the cessation of hostilities and the consolidation of the neutral status of Ukraine. Experts note that the military operation in this country, conducted by Russia, has caused increased volatility in the markets. In addition, it hinders the recovery of the global economy. In March, consumer confidence in the economy deteriorated in European countries amid rapidly rising inflation and fears of serious consequences of the geopolitical conflict. Indices assessing consumer confidence in Germany and France showed a significant ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished :MondayNew Zealand celebrates Labor Day.In Germany, the business expectations index, an assessment of the current situation and the business climate index from the IFO agency will be released.In Canada, the volume of wholesale sales will be published. The representative of the Bank of England, Silvana Tenreiro, will make a speech.TuesdayIn the US, a composite housing cost index, consumer confidence index from CB and new home sales will be released. The American Petroleum Institute will report on oil reserves for the past week.WednesdayIn New Zealand, the trade balance, the ANZ business confidence index, the consumer price index and the weighted average consumer price index will be released.In Germany, the Gfk consumer climate index will be published.In the US, data on basic orders for durable goods, the volume of orders for durable goods, the balance of foreign trade and inventory in retail trade excluding cars will be released. On this day, the Bank of Canada's monetary policy report, interest rate decision, accompanying statement will be published, and a press conference of the Bank of Canada will be held. The Energy Information Administration will report on oil reserves in the United States for the past week.ThursdayIn Japan, the volume of retail sales, the report on the monetary policy of the Bank of Japan and the decision on the interest rate will be released.In Germany, the change in the number of unemployed and the unemployment rate will be known. The ECB will hold a press conference following the announcement of the interest rate. In Germany, the consumer price index will be published.The US will publish GDP, the GDP deflator, the number of initial applications for unemployment benefits and the index of pending sales in the real estate market.FridayIn Japan, data on the ratio of the number of vacancies and job seekers, the basic consumer price index of Tokyo and the volume of industrial production will be released. In Australia, the producer price index and retail sales volume will be published.In France, consumer spending, GDP and consumer price index will be published. In Germany, the volume of retail sales and GDP will become known. In the Eurozone, the consumer price index and GDP will be released. In Russia, the volume of retail sales and the unemployment rate will be published.In the USA, the basic price index of personal consumption expenditures, the labor cost index and the price index of personal consumption expenditures will be published. In Canada, GDP, the commodity price index, the business activity index (PMI) in Chicago, the consumer expectations index and the consumer sentiment index from the University of Michigan will be released. Baker Hughes will present changes in the number of active drilling rigs last ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished:MondayPrices for corporate services will be published in Japan. In the Eurozone, consumer lending data will be released. The Bundesbank will present a monthly report with an analysis of the current and expected state of the economy. In the US, orders for durable goods and an indicator of business activity in the industrial sector of the Federal Reserve of Dallas will be published.TuesdayThe Bank of Japan will hold a meeting of the monetary policy committee, the regulator's decision on the interest rate will become known. The National Bank of New Zealand will present an activity forecast, and the Reserve Bank will present an index of business optimism. Retail sales figures will be released in Australia. In Germany, the Gfk consumer confidence index will be published. In France, the level of consumer confidence will be known, and in Sweden-the trade balance. In the US, the housing price index, the balance of trade in goods, the Redbook retail sales indicator, the level of consumer confidence and the indicator of business activity in the manufacturing sector of Richmond will be released. The American Petroleum Institute will report on last week's oil reserves.WednesdayIn New Zealand, data on construction permits will be released. In Japan, retail sales data will be published. In the UK, the Nationwide house price index, consumer lending data and the number of approved mortgage applications will be known. In Switzerland, the KOF index of leading indicators will be released, and in Sweden – the level of consumer confidence. In Spain, consumer inflation indicators will be published, and in Italy, the producer price index will be published. In the Euro area, an indicator of sentiment in the service sector, the level of consumer confidence, an index of business optimism in industry, an indicator of sentiment in the economy and an indicator of the business climate will be released. The Swiss National Bank will present a quarterly report. In the US, the MBA mortgage lending index and pending home sales transactions will be published. The Energy Information Administration will report on commercial oil reserves in the United States last week.ThursdayIn Japan, data on industrial production, the volume of orders in the construction sector, data on the construction of houses started, the volume of foreign and Japanese investments in securities will be released. China will publish the level of business activity in the manufacturing sector and in the service sector. In Germany, the import price index, consumer inflation data and the unemployment rate will be published, and in Switzerland-the real volume of retail trade. In the UK, quarterly GDP data, the total volume of commercial investment and the balance of payments will be released. In France, the consumer price index will be known. In the Eurozone, the unemployment rate, the basic and main consumer price indices will be published. In Canada, the raw material price index will be known. The US will publish the number of initial and repeated applications for unemployment benefits, GDP data for the second quarter of 2021, the price index of personal consumption expenditures and the Chicago business activity indicator. The Energy Information Administration will report last week on natural gas reserves in the United States.FridayANZ consumer confidence indicator will be released in New Zealand. In Australia, the Commonwealth Bank index of activity in the manufacturing sector, data on mortgage loans and construction permits will be known. In Japan, the unemployment rate, the ratio of the number of vacancies and applicants, the indicator of business activity in the service sector and in the manufacturing sector and the Tankan index of large manufacturers will be released. In China, the Caixin PMI index in manufacturing will be known. Russia, Spain, Italy, France, Germany, the Eurozone and the UK will publish indicators of business activity in the manufacturing sector. In Germany, retail sales data will be released, and in France, import, export indicators and the overall trade balance will be released. In the US, data on personal spending and income, construction spending, the Markit PMI index in the manufacturing sector and the University of Michigan consumer confidence indicator will be published. Baker Hughes will report last week on the number of active drilling rigs in the United States and the ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished:MondayIn New Zealand, the index of activity in the service sector from Business NZ will be released. In the UK, the Rightmove house price index will be published. In Germany, the producer price index will be known. The Bundesbank will present a monthly report with an analysis of the current and expected state of the economy. The US will publish an index of the market value of housing.TuesdayThe Westpac Consumer Sentiment survey will be released in New Zealand. The Reserve Bank of Australia will publish the minutes of its last meeting. In Switzerland, data on imports, exports and the overall trade balance will be known. In the UK, indicators of net public sector borrowing will be released. The Central Bank of Sweden will hold a meeting, the regulator's decision on the interest rate will become known. And also in Sweden, the unemployment rate will come out. In the US, data on the construction of houses started and the Redbook retail sales indicator will be published. The American Petroleum Institute will report on the reserves of raw materials last week.WednesdayIn Australia, the Westpac index of leading indicators will be released. Central bank meetings will be held in China and Japan, and a decision on changing the interest rate will be announced. The deputy head of the Reserve Bank of Australia, Michelle Bullock, will make a speech.The ECB will hold a meeting in the Eurozone that is not directly related to monetary policy issues. In Italy, the producer price index and sales data in the industrial sector will be released. The Swiss National Bank will present a quarterly report. In Russia, the producer price index and industrial production indicators will be known.In the US, the MBA mortgage lending index and sales data on the secondary housing market will be published. The Energy Information Administration will report last week on commercial oil reserves. The meeting of the Fed's Open Market Committee will be held on the same day. The US regulator will announce its decision on the interest rate and publish its position on monetary policy.ThursdayIn Australia, business activity indices in the manufacturing sector in the service sector will be released. In France, Germany, the Eurozone and the UK, business activity indicators in the manufacturing sector and in the service sector will be published. On this day, meetings of the Central Banks of Switzerland and England will be held. In the US, the number of initial and repeated applications for unemployment benefits, the index of national activity of the Federal Reserve of Chicago, indicators of activity in manufacturing and in the service sector will be released. The Energy Information Administration will report on natural gas reserves for the past week.FridayIn New Zealand, data on imports, exports and the overall trade balance will be released. In Japan, the consumer price index and the indicator of business activity in the manufacturing sector will be published. In the UK, the Gfk consumer confidence index will be known. In Sweden, the producer price index will be released, and in Italy - the level of confidence in business circles. In Germany, the business optimism index, an indicator of the assessment of the current situation and an indicator of economic expectations from the IFO will be published. In the US, new home sales data will be released. Baker Hughes will report on the number of active drilling rigs last week in the United States and in the ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguishedMondayIn Japan, the producer price index and the indicator of the activity of large enterprises in the manufacturing sector will be released. The US will publish a monthly report on the state of the budget.TuesdayReserve Bank of Australia Governor Philip Lowe and his economic adviser Lucy Ellis will make statements. And also in Australia, the house price index will be published. The National Bank of Australia will present the confidence index and the index of business conditions. In Japan, data on industrial production and capacity utilization will be released. In the UK, the number of applications for unemployment benefits, an indicator of the unemployment rate and the size of the average salary will be published. In Switzerland, the producer and import price index will be released. In Sweden and Spain, consumer price indices will be known. In Canada, the volume of production sales will be released. In the US, the basic and main consumer price indices and the Redbook retail sales indicator will be published. The American Petroleum Institute will report last week on the reserves of raw materials.WednesdayIn New Zealand, the balance of payments and the current account will be released. Japan will publish orders for engineering products and an index of activity in the service sector. In Australia, the Westpac consumer confidence index and new home sales data will be released. In China, the housing price index, retail sales and industrial production data will be known. The National Bureau of Statistics of China will hold a press conference. In the UK, the retail price index, the basic and main consumer price indices will be released. France and Italy will also publish consumer inflation data. In the Eurozone, the indicators of industrial production and costs per unit of labor will be known. In the US, the MBA mortgage lending index, an indicator of business activity in the manufacturing sector of New York, import and export price indices and industrial production data will be released. In Canada, the basic and main consumer price indices will be known. The Energy Information Administration will report last week on commercial oil reserves in the United States.ThursdayIn New Zealand, the REINZ house price index and economic growth indicators for the second quarter of this year will be published. Japan will release data on imports, exports and the total trade balance, as well as indicators of investment in foreign and Japanese securities. In Australia, the indicators of full and part-time employment, the unemployment rate and expectations for consumer price inflation will be known. The Bank of Australia will present a report on financial and economic changes. In Switzerland, the forecast of the development of the national economy from SECO will be released. The trade balance will be published in the Eurozone. In Canada, data on the construction of houses started, the ADP employment report, wholesale sales data and the volume of Canadian and foreign investments in national securities will be known. In the United States, retail sales data, the number of initial and repeated applications for unemployment benefits, the index of business activity in the manufacturing sector of Philadelphia and the volume of purchases of American securities by foreign investors will be released. The Energy Information Administration will report last week on natural gas reserves in the United States.FridayIn New Zealand, the index of business activity in the manufacturing sector will be released. In the UK, retail sales figures and the forecast of consumer price inflation will be published. In the Eurozone, the basic and main consumer price indices, the volume of production in the construction sector and the current account balance will be known. In the US, the University of Michigan consumer confidence index will be published. Baker Hughes will report on the number of active drilling rigs last week in the United States and the ...

To date, there are more than 200 stock exchanges with various levels of capitalization around the world. The activities of such financial institutions have an impact on the intensity of the economic processes of the entire market. In particular, the stock exchange provides optimal conditions for the turnover of securities and acts as a price regulator for them.The oldest trading platform is considered to be the Frankfurt Stock Exchange. Its foundation was timed to coincide with the annual fair in 1585. By that time, Frankfurt had become a real economic center of Germany, where traders from almost all countries of the world flocked. The abundance of various banknotes provoked financial difficulties when concluding transactions. To solve this problem, the stock exchange was created. With its help, it was possible to create a single payment system and develop a fixed exchange rate.World stock exchanges and features of their functioningDespite the large number of financial regulators operating in all countries of the world, only a few of them have preserved and increased the power of their economic potential. Their capitalization level exceeds $ 1 trillion and accounts for 87% of the total market of the whole world. The rating of the world's largest exchanges is based on stock indices and data on the total turnover of trades. Today it looks like this.New York Stock Exchange (NYSE)It was created in 1792 as a result of an agreement of a group of American entrepreneurs. Shares of more than 3 thousand of the largest companies around the world are listed on its site. To successfully complete the listing, an investor needs to have an average annual income of $2.7 million. The Dow Jones index, as well as the NYSE Composite and NYSE ARCA Tech 100 Index are calculated based on the indicators of industrial companies' shares on the stock exchange.Read more: What is the New York Stock Exchange (NYSE)NASDAQIt began its work in the 1970s as an automated quotation system. Today, more than 4,000 companies, mainly related to the IT sector, are represented in the listing of the exchange. A number of trading indices are calculated on the exchange, each of which is associated with a specific economic sector. The NASDAQ Composite and NASDAQ National Market Composite index are consolidated.London Stock Exchange (LSE)The official date of its opening is considered to be 1801, although this financial institution began to function since 1570 under the leadership of the royal adviser Thomas Gresham. By its structure, the London Stock Exchange is a joint-stock company that sells its own shares on the market. It accounts for about 50% of the turnover of all securities in the world. The exchange works not only with large companies, but also with aspiring entrepreneurs, to whom it provides loyal conditions. The composite index is FTSE.Tokyo Stock Exchange (TSE)It first appeared on the Japanese financial market in 1878. In terms of capitalization, it is currently in second place after the New York Stock Exchange. The largest companies of the Asian and European regions place their securities on its platform. The main index families are NIKKEI 225 and TOPIX (Tokyo Stock Price Index).Read more: About NASDAQ Stock ExchangeShanghai Stock Exchange (SSE)China's largest exchange is considered a non-profit organization and is under the patronage of the government Securities Commission. Based on the results of trading, the SSE Composite index is calculated, which reflects the state of the shares of all companies that are listed on the exchange.Hong Kong Stock Exchange (HKSE)It has securities of one and a half thousand large issuers from Asia and Europe. Capitalization is at the level of $ 2.9 trillion, and according to this indicator, HKSE ranks sixth in the ranking of the world's major exchanges. The Hang Seng index represents the weighted average value of the shares of the 34 largest companies of the exchange.EuronextIt has its own branches in the Netherlands, Portugal, Belgium and France. In addition to securities trading, it provides clearing services and analytical information on the market. Its total capitalization is 2.9 trillion dollars. The list of indices calculated during trading includes: Euronext 100, AEX index, BEL20 and CAC 40.Read more: IPO of a company - mechanism, examples & strategiesToronto Stock Exchange (TSX)It first appeared on the financial market of North America in 1878. The Canadian dollar is used as the main currency. The S&P/TSX trading index reflects the condition of 200 companies whose financial weight is at least 0.05% of the total capitalization.Shenzhen Stock Exchange (SZSE)It is a member of the United Union of exchanges of Asia and Oceania. Shares on the stock exchange are divided into two types: for residents and for foreigners. In 2016, free access to securities was opened for all investors, and a cross-trading system became available. The SZSE Component Index allows you to track the growth dynamics of the most liquid shares of 40 companies that are listed on the stock exchange at the current time.Frankfurt Stock Exchange (FWB)It has held a leading position on the German stock market since 1949. The main indicator of the DAX index reflects the value of securities of the 30 largest German companies and the state of the German economy as a whole.Bombay Stock Exchange (BSE)It is considered the oldest stock exchange not only in India, but also in the entire Asian region. It was founded by the British during the colonization of the country. At first, the auction was held in front of the city hall building under huge banyan trees, then a separate building was built for this purpose. Today, its capitalization level exceeds $ 1 trillion, which makes it possible to leave behind all potential competitors in the region. The main stock index is BSE.Read more: What is an IPO: how the company goes on the stock exchangeNational Stock Exchange of India (NSE)It was opened in Mumbai on the recommendation of the Government of the country. The exchange organizes trades on the stock market, debt obligations and production instruments. The exchange's listing includes more than 1,600 of the largest companies in the region. The Indian rupee is used as the settlement currency.Swiss ExchangeThe trading platform started functioning in 1995 after the merger of the Zurich, Geneva and Basel exchanges. Today, all trades are conducted only in electronic form. Based on the SMI Index, a conclusion is made about the state of the 20 largest companies, the aggregate share of whose securities accounts for 85% of all exchange trades.Australian Stock Exchange (ASX)The main stock and futures exchange in the region. The activities of this financial regulator are controlled by the State Commission on Investments and Securities. The main financial index of the S&P/ASX 200 consists of the value of securities of 200 names of blue chips.Read more: The DAX index – history of its creation, structure and featuresKorean Stock Exchange (KRX)It is among the leaders in terms of trading volume with derivatives. The total capitalization is $ 1.2 trillion. It was formed as a result of the merger of KOSDAQ and the Korean Futures Exchange. The headquarters is located in Busan. The main index is KOSPI.NASDAQ NordicIt is a group of subsidiaries of NASDAQ Inc., which manage the stock markets of the Baltic States, the Caucasus and Northern Europe. The headquarters is located in Stockholm. 564 largest regional companies are represented in the listing of the exchange.Johannesburg Stock Exchange (JSE)The largest trading platform on the African continent. She started working in 1887 with securities of gold mining companies. Bidding is conducted "by voice" with subsequent offsetting through an automated system. The exchange gives preference to mining sector stocks. The main calculated index is FTSE/JSE.Read more: S&P 500 Stock Index - history, calculation and forecastingMadrid Stock Exchange (BM)Various exchange instruments are traded on this platform. In terms of capitalization, it is considered the largest stock exchange in Spain, far ahead of regional offices in Barcelona, Valencia and Bilbao. IBEX 35 is the base index of the exchange.Taiwan Stock Exchange (TWSE)It is located in the capital of Taiwan - Taipei. Transactions on securities of mainly regional companies are carried out on this trading platform. The total capitalization level is 0.8 trillion dollars. Based on the results of trading, the overall TAIEX financial stability index is calculated.Sao Paulo Stock Exchange (BM&F)It was formed as a result of the merger of the Brazilian Trading and Futures exchanges. The total value of transactions made on the trading floor per day exceeds $1 trillion. The main Ibovespa calculation index includes the value of securities of the largest companies that participate in the auction.Mexican Stock Exchange (BMV)The exchange began its work in 1908. The headquarters is located in Mexico City. Since 1999, all transactions have been concluded electronically. The IPC index includes the value of securities of the 36 largest issuers that are listed on the exchange.Read more: Nikkei 225 Index - history, calculation and the featuresMoscow Stock Exchange (MOEX)The holding was formed in 2011 after the merger of RTS and MICEX. Currency, securities, derivatives, precious metals and grain trading transactions are concluded on the exchange. In addition, the Moscow Exchange carries out clearing and depository activities. The Moscow Exchange indices are among the key indicators of the state of the Russian economy. Based on the results of trading, the Moscow Exchange Index is determined (calculated in rubles) and the RTS (calculated in US dollars).Italian Stock Exchange (ISE)It was founded in 1808, in 1998 it became a joint stock company, and in 2007 it merged with the London Stock Exchange. The trading platform is located in Milan. The FTSE MIB index is calculated based on the value of the shares of the 40 largest companies, the list of which is regularly reviewed and updated.Helsinki Stock Exchange (HEX)It began its work in 1908. Since 1980, the transaction system has become fully automated. Shares and derivatives of large corporations, including Nokia, Finnair and Tikkurila, are traded on the exchange. The main stock index is OMX Helsinki 25.Read more: Index NASDAQ 100 - history, advantages and what it depends ...

Indices for the investorNews reports often inform us about the growth and fall of stock market indices. Obviously, this is important, since it gets into prime-time news. However, what should this mean to the ordinary man in the street?Reference books tell us that "An index is a derived quantity ..." and behind the jumble of words they do not always give us an idea of the essence. School memories about "dividing something into something" generally set the right vector for reflection, but here it is critically important to understand what to divide into what and why. So, let's figure it out.Read more: Index NASDAQ 100 - history, advantages and what it depends onWhat is a stock market index in the financial world?Let's start from the beginning and consider the very first index that appeared in the world: this is the soaring Dow Jones Index. Its first version appeared back in 1884, and this index still exists today. The emergence of such a tool was associated with the need to assess the dynamics of industrial development in the United States. It was necessary to find some indicator that would help to assess whether production is growing or falling. How did you solve this problem?It's very simple: we took 12 of the largest industrial companies in the United States and calculated the average stock price for all. Then they did the same after some time. And again. And now several control points have already appeared and a graph has been built out of them, from which the trend was visible: in general, the prices of shares of the largest companies are growing or not. Since the growth of the share price is an indicator of investors' confidence in the industry, their desire to invest in it (and this is an opportunity for the industry itself to develop due to the inflow of investments), these calculations have become the main measure of industrial development. Therefore, the growth of the index means the development of the entire industrial sector, and the fall, respectively, indicates a crisis. The evaluation method proved to be viable, received the name of the authors-developers, and since 1896 the Dow Jones Index has been officially published.A lot has changed since then, including in the Dow Jones Index itself. There are Indices for different industries, for the economies of entire countries. And the indices themselves are now a little less straightforward - all sorts of correction factors are applied, dividends and a number of other factors are taken into account. However, the following principle remained unchanged: the index shows the average temperature of the development of an industry or a country.An interesting fact: from the very first version of the Dow Jones Index to the present day, General Electric was part of it.Read more: Nikkei 225 Index - history, calculation and the featuresThe Dow Jones index today is an indicator of the health of the US economy. It is calculated based on the value of the shares of the 30 largest companies. Another important index for assessing the US economy is the S&P 500, it is called the barometer of the American economy. It is calculated for 500 American companies that have the highest market price (capitalization).For Germany, the same index is DAX, for Japan - Nikkei 225. There are Indices for industries - for example, for energy, telecommunications, metals - they, in turn, show in the same way whether the industry is developing, stagnating or even in decline.Indices are the investor's loyal friendsFirstly, from the point of view of investments in the index itself: today there are tools in the financial system that allow you to earn on the growth of indices. And the indices are unique in this quality - they are always growing in the historical perspective. This is logical: civilization is developing, humanity is getting more and more benefits, and the index only reflects this process.And secondly, Indices help us evaluate the industry or economy of the country in which we want to invest in a security. The dynamics of the development of the industry or economy reflected in the index will help you assess the potential of a particular security: does it have the possibility of growth relative to the "average temperature" or is it worth waiting for a decline in quotations rather.Summing up, we note the main thing: indices are indicators of the development of industries and entire economies. Both governments and ordinary investors are guided by them. Therefore, when making a trading decision to purchase a particular security, it makes sense to look at the indices in order to assess the overall economic situation and understand the potential of the stock.Read more: S&P500 ...