What Is The Euro STOXX 50 Index?
The Euro STOXX 50 is an index that tracks the performance of the 50 largest companies in the eurozone, similar to the Dow Jones Industrial Average, which tracks the 30 largest publicly-traded companies in the U.S.
The index includes stocks from 11 eurozone countries, namely Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The top 10 components in the index as of 28 February 2020, along with their industry sector and their headquarters country, were the following:
* Total, oil & gas
* LVMH Moet Hennessy, personal & household goods
* Sanofi, health care
* Airbus, industrial goods & services
* Linde, chemicals
* SAP, technology
* Allianz, insurance
* Siemens, industrial goods & services
* ASML, technology
* Unilever, personal & household goods
Stocks in the index are drawn from 19 "supersectors" in 11 eurozone countries. They account for about 60% of the total market capitalisation of the Euro STOXX Total Market Index, which tracks all of the stocks in the eurozone.
The index is one of the most liquid indexes for tracking stocks in the eurozone and is licensed to financial institutions to serve as the underlying basis for various financial products, including options, futures and exchange-traded funds (ETFs). It is also widely used for benchmarking purposes. It serves as the basis for single subindexes by industry, such as the Euro STOXX 50 ex Financials, as well.
In addition, it's the basis for indices that track stocks in the individual large countries in the eurozone, namely France, Germany, Italy, the Netherlands and Spain. Each one covers Euro STOXX 50 components from that specific country.
Brief History Of Euro STOXX 50
The index was launched in 1998 along with several other indexes created by STOXX Ltd., a leading global index provider that publishes dozens of indexes that track stocks and bonds all over the world. In September 2019, STOXX became a part of Qontigo, a financial intelligence company that is owned by Deutsche Börse Group.
The Euro STOXX 50 is the leading blue-chip stock index for the eurozone. It tracks the performance of the 50 largest companies in the area, similar to the Dow Jones Industrial Average in the U.S.
Senior Market Specialist
Russell Shor (MSTA, CFTe, MFTA) is a Senior Market Specialist at FXCM. He joined the firm in October 2017 and has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the International Federation…