Technical Analysis EURO STOXX 50 Index Futures
About EURO STOXX 50 IndexFutures contracts for the EURO STOXX 50 Index are traded on the European Exchange (Eurex) under the ticker FESX. Their size corresponds to the value of the underlying index multiplied by 10 euros. The minimum price fluctuation is 1 pip. Trading takes place from 01:00 to 22:00 Central European Time (CET).
Eurex also trades USD-denominated EURO STOXX 50® Index Quanto Futures. Their size corresponds to the STOXX 50 index rate multiplied by $10. Futures trading takes place from 07:30 to 22:00. The minimum price change is 1 index point or $10 per contract.
Futures on the EURO STOXX 50 Index are also traded on the Korean Stock Exchange (Korea Exchange, KRX). Contracts are traded on the site from 09:00 to 15:45 local time (GMT+09:00). The futures size is equal to the rate of the underlying index multiplied by 10,000 KRW. The minimum change in its price is 1 pip or 10,000 won per contract.
Futures and options on the EURO STOXX 50 index are among the most liquid in the world.
Brief overview of the EURO STOXX 50 indexThe EURO STOXX 50 Stock Index was launched on 02.26.1998. The provider of Euro Stokes 50 is STOXX Limited, this organization appeared as a result of the merger of the main German and Swiss stock exchanges. This index is part of the blue chip indices, the calculation takes into account the shares of companies from 11 EU countries.
EURO STOXX 50 affects 19 sectors of the European Union economy.
At the initial stage, the index consisted exclusively of blue chips. Later, interstate corporations began to be included in the Euro Stokes 50.
The peculiarity of Euro Stokes 50 is that it is calculated in 5 currencies - in euro, US dollar, Japanese yen, Canadian dollar and British pound. At the same time, in EUR and USD recalculation is carried out every 15 seconds, and in other currencies - on a daily basis.
The capitalization of the index exceeds $2.0 trillion. Also, the capitalization of the Euro Stox 50 is approximately 60% of the capitalization of the EURO STOXX Total Market Index, calculated on the securities in free circulation.
The value of the Euro Stokes 50 index is affected by:
- The state of the EU economy, the real sector (industry) has a particularly high weight;
- US monetary policy;
- The state of the world economy as a whole;
- Over 60% of the basket's capitalization comes from France and Germany, the quotes are strongly influenced by the state of industry in these countries.
The composition of the EURO STOXX 50 indexThe Euro Stoxx 50 includes securities of companies that are leaders in their sectors in 11 EU countries. The largest contribution is made by Germany and France, both countries are considered to be the locomotives of the European economy. In the EURO STOXX 50 basket, these countries account for 60-70% of the index basket capitalization, with the Netherlands adding another 10-12%.
The composition of the Euro Stoxx 50 shows an emphasis on industry. Thus, the banking sector and insurance together account for about 10-13% of the capitalization of the entire basket. At the same time, the healthcare, heavy industry, consumer goods, chemical and technology sectors account for more than 50%.
The leaders in terms of influence on quotes include SAP SE (German software manufacturer), ASML Holding N.V. (representative of the Netherlands, provides the microelectronic industry with photolithographic circuits), Sanofi (pharmaceutical company, located in France), Louis Vuitton Moët Hennessy (produces luxury goods), The Linde Group (chemical company). The listed companies account for about 20-25% of the capitalization of the index basket.
Candidates for the index basket are selected as follows:
- In each of the 19 EURO STOXX Supersector indices, companies are ranked by capitalization, calculated on free float;
- A pool is recruited from the largest companies, its total capitalization should not exceed 60% of the EURO STOXX TMI Supersector Index capitalization. Companies that are part of the current EURO STOXX 50 Index are automatically included in this pool;
- All companies are ranked by capitalization;
- The first 40 companies automatically enter the Euro Stox 50 basket. A buffer zone is formed from companies numbered 41 to 60 and the remaining 10 EURO STOXX 50 participants are selected from it.
The "weight" of each of the participants in the index is checked quarterly. None of the representatives of the basket can have a "weight" of more than 10%.
EURO STOXX 50 Index Companies
- SAP SE
- ASML HOLDING N.V.
- SANOFI SA
- LINDE PLC
- LVMH MOËT HENNESSY – LO..
- TOTAL S.A.
- ALLIANZ SE
- SIEMENS AG
- UNILEVER N.V.
- BAYER AG
- AIR LIQUIDE
- ENEL S.P.A.
- SCHNEIDER ELECTRIC SE
- BASF SE
- DEUTSCHE TELEKOM AG
- VINCI SA
- ADIDAS AG
- ANHEUSER-BUSCH INBEV
- BANCO SANTANDER, S.A.
- KERING SA
- BNP PARIBAS
- KONINKLIJKE PHILIPS N.V..
- AIRBUS SE
- MUENCHENER RUECKVERSICH..
- DEUTSCHE POST AG
- DAIMLER AG
- INDUSTRIA DE DISEÑO TEX..
- DEUTSCHE BÖRSE AG
- AHOLD DELHAIZE N.V.
- VOLKSWAGEN AG
- INTESA SANPAOLO SPA
- CRH PLC
- ENI SPA
- BANCO BILBAO VIZCAYA AR..
- ING GROEP N.V.
- TELEFONICA S.A.
- AMADEUS IT GROUP, S.A.
- NOKIA OYJ
- BMW AG
- VIVENDI SE
- FRESENIUS SE & CO. KGAA
- SOCIÉTÉ GÉNÉRALE
EURO STOXX 50 Index calculationThe calculation of the EURO STOXX 50 rate is based on the Laspeyres method, the calculation formula is as follows:
- t - is the index calculation time;
- pi,t - is the price of the i-th company at time t;
- si,t - is the number of shares of the i-th company at time t;
- ffi,t - is the number of company shares in free float;
- cfi,t - is the "weight" factor of the company's shares at time t;
- xi,t - is the exchange rate of the currency of the country to which the company belongs to the currency in which EURO STOXX 50 is calculated;
- Dt - is the divisor.
Where the adjusted delta is defined as the difference between the regular and adjusted capitalizations of the index. For companies with corporate actions current at time t+1, capitalization is calculated from the adjusted number of shares and the adjusted free float at time t. The same indicator is subtracted from it at time t.
EURO STOXX 50 Index FamilySTOXX Europe 50 - differs from Euro Stokes 50 in that the basket includes the largest companies from 17 EU countries;
STOXX Europe 600 - it includes companies from 17 EU countries. The basket includes companies with large capitalization, both medium and small ones.
STOXX Global 150 - the basket includes the largest companies in Europe, North America, as well as the Pacific and Asian regions. 50 from each region;
EURO STOXX 50 ex Financials - is a subspecies of Euro Stox 50 which excludes companies representing the financial sector;
EURO STOXX 50® ex Banks – banks are excluded from the standard Euro Stox 50 basket;
STOXX Emerging Markets 50 - reflects the state of the emerging markets of the planet;
STOXX France 50 - made up of French blue chips. There are similar sub-indices for a number of other countries, including non-EU countries;
STOXX Europe 600 EM Exposed - The basket includes companies that generate significant revenue, but do not belong to developed markets.
There are also subspecies of Euro Stokes 50 depending on the reinvestment of dividends.
ETFThe most famous ETF that copies the Euro Stoxx 50 index is the American SPDR Euro Stoxx 50 (FEZ). Several ETFs have been created by the iShares provider, such as iShares EURO STOXX 50 UCITS Dist (LSTXXE). There are also a number of funds offered by Lyxor, the largest of which is Lyxor UCITS Stoxx 50 Daily Double Short (BXX).
The graph shows that the index reacts particularly sharply to crisis phenomena and then recovers for a rather long time. But this does not make the Euro Stokes 50 unattractive for investment. It is suitable both for medium-term investments and for active work during the day - volatility allows you to earn money through trading.