EURO STOXX 50 and STOXX Europe 600, everything you need to know?

In This article we will give a brief idea about EURO STOXX 50 and STOXX Europe 600.

EURO STOXX 50

The EURO STOXX 50 is a stock index of Euro zone stocks designed by STOXX, an index provider owned by Deutsche Börse Group.

According to STOXX, its goal is “to provide a blue-chip representation of Super-sector leaders in the Euro zone”.

In fact, it is made up of fifty of the largest and most liquid stocks.

Moreover, The index futures and options on the EURO STOXX 50, traded on Eurex, are among the most liquid such products in Europe and the world.

The EURO STOXX 50 was introduced on 26 February 1998.

However, Its composition is reviewed annually in September.
The index is available in several currency (EUR, USD, CAD, GBP, JPY) and return (Price, Net Return, Gross Return) variant combinations.

Furthermore, Calculation takes place every 15 seconds between 09:00 CET and 18:00 CET for the EUR and USD variants of any return type, while the CAD, GBP and JPY variants are available as end-of-day calculation only (18:00 CET).

The EURO STOXX 50 Index is derived from the 19 EURO STOXX regional Super sector indices and represents the largest super-sector leaders in the Euro zone in terms of free-float market capitalisation.

The index captures about 60% of the free-float market capitalisation of the EURO STOXX Total Market Index (TMI), which in turn covers about 95% of the free-float market capitalisation of the represented countries.

The EURO STOXX 50 serves as the basis for single sub-indices such as the EURO STOXX 50 ex Financials, which excludes all companies assigned to the ICB code 8000.

It is one of the most liquid indices for the Euro zone:

an ideal underlying for financial products or for bench-marking purposes.

Additionally, the index serves as an underlying for many strategy indices, such as the EURO STOXX 50 Risk Control Indices.

Buffers are used to achieve the fixed number of components and to maintain stability of the indices by reducing index composition changes.

Selection methodology ensures a stable and up-to-date index composition. Fast-entry and fast-exit rules ensure the index accurately represents the performance of only the biggest and most liquid stocks.

 

Development

The following table shows the end-of-year values of the Euro Stoxx 50 index since 1986.

A record closing high of 5,464.43 was recorded on 6 March 2000.

Year Year end
value
Change,
in points
Change,
in %
1986 900.82
1987 648.13 −252.69 −28.05
1988 861.36 213.23 32.90
1989 1098.49 237.13 27.53
1990 858.72 −239.77 −21.83
1991 1000.00 141.28 16.45
1992 1033.51 33.51 3.35
1993 1433.34 399.83 38.69
1994 1320.59 −112.75 −7.87
1995 1506.82 186.23 14.10
1996 1850.32 343.50 22.80
1997 2531.99 681.67 36.84
1998 3342.32 810.33 32.00
1999 4904.46 1562.14 46.74
2000 4772.39 −132.07 −2.69
2001 3806.13 −966.26 −20.25
2002 2386.41 −1419.72 −37.30
2003 2760.66 374.25 15.68
2004 2951.24 190.58 6.90
2005 3578.93 627.69 21.27
2006 4119.94 541.01 15.12
2007 4399.72 279.78 6.79
2008 2451.48 −1948.24 −44.28
2009 2966.24 514.76 21.00
2010 2792.82 −173.42 −5.85
2011 2316.55 −476.27 −17.05
2012 2635.93 319.38 13.79
2013 3109.00 473.07 17.95
2014 3146.43 37.43 1.20
2015 3267.52 121.09 3.85
2016 3291 23 0.7
2017 3504 213 6.4777В

 

STOXX Europe 600

The STOXX Europe 600, also called STOXX 600SXXP, is a stock index of European stocks designed by STOXX Ltd.

This index has a fixed number of 600 components representing large, mid and small capitalisation companies among 17 European countries, covering approximately 90% of the free-float market capitalisation of the European stock market (not limited to the Euro zone).

The countries that make up the index are the United Kingdom (comprising around 27% of the index) France, Germany and Switzerland(accounting for around 15% of the index each), as well as Austria, Belgium, Denmark, Finland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, and Sweden.

The STOXX Europe 600 was introduced in 1998.

Its composition is reviewed four times a year, in March, June, September, December.

The index is available in several currency (AUD, CAD, CHF, EUR, GBP, JPY, USD) and return (Price, Net Return, Gross Return) variant combinations.

It is licensed to financial institutions to serve as underlying for a wide range of investment products such as exchange-traded funds (ETFs), futures, options, and structured products worldwide.

According to Wikipedia 

Read more:

Hassan Hadaoui
Hassan Hadaoui
Writer and Economist
- Advertisment -BC XTB

Must Read

Bitcoin exception before FED meeting.

Bitcoin and FED decision; Tomorrow 31st of July 2019, Federal Reserve Bank will announce the monetary policy for the rest of the year. the...