Definition Emerging markets refer to nations with social or business activity in the process of rapid growth and industrialization. These economies typically showcase a rising middle class, improving infrastructure and increasing foreign investment. Unlike developed markets, emerging markets are characterized by higher volatility and growth potential, making them an appealing destination for investors looking for high returns.
Key Components Economic Growth: Emerging markets often display higher GDP growth rates compared to developed economies, attracting global capital.
Definition The FTSE 100 Index, often referred to as the “Footsie,” is a stock market index that represents the 100 largest companies listed on the London Stock Exchange (LSE) by market capitalization. It is a crucial indicator of the performance of the UK stock market and the economy as a whole.
Components The FTSE 100 is comprised of various sectors, including:
Financial Services: This sector includes major banks and insurance companies, significantly influencing the index’s movements.
Definition The Hang Seng Index (HSI) is a stock market index that tracks the performance of the largest and most liquid companies listed on the Hong Kong Stock Exchange. It is often viewed as a crucial indicator of the overall health of the Hong Kong economy, providing insights into market sentiment and economic trends. The index comprises 50 constituent stocks, representing about 60% of the total market capitalization of the Hong Kong Stock Exchange.
Definition The Nifty 50, officially known as the Nifty Index, is a stock market index that represents the weighted average of the top 50 large companies listed on the National Stock Exchange (NSE) of India. This index serves as a crucial benchmark for the Indian equity market and is widely tracked by investors and analysts alike.
The Nifty 50 is designed to reflect the overall health of the Indian stock market and the economy.
Definition The Nikkei 225 Index is a stock market index that tracks the performance of 225 prominent companies listed on the Tokyo Stock Exchange (TSE). It is one of the most recognized indices in Asia and serves as a barometer for the Japanese economy. Unlike many indices, which are weighted by market capitalization, the Nikkei 225 is price-weighted, meaning that companies with higher stock prices have a greater influence on the index’s performance.
Definition The Russell 2000 Index is a stock market index that tracks the performance of 2,000 small-cap companies in the United States. It is part of the broader Russell 3000 Index, which includes the 3,000 largest U.S. stocks. The Russell 2000 is often used as a benchmark for small-cap investments and is a vital tool for investors looking to understand the performance of smaller companies compared to larger, more established firms.
Definition The Shanghai Composite Index, often referred to as the SSE Index, is a stock market index that reflects the performance of all A-share and B-share stocks listed on the Shanghai Stock Exchange. It is a crucial indicator of the Chinese economy and provides insights into market trends, investor sentiment and the overall health of the financial landscape in China.
Components of the SSE Index The SSE Index comprises two main types of stocks:
Definition The VIX or Volatility Index, is a popular measure of market expectations of near-term volatility, derived from the price inputs of S&P 500 index options. Often referred to as the “fear gauge,” the VIX reflects investors’ sentiment about market turbulence. When the VIX is high, it indicates that investors expect significant price swings in the near future, while a low VIX suggests a stable market environment.
Components of the VIX The VIX is calculated using the following components:
Definition The Wilshire 5000 Total Market Index is an extensive stock market index that aims to track the performance of every publicly traded company in the United States. It was created in 1974 by Wilshire Associates and is considered one of the broadest measures of the U.S. equity market. Unlike other indices, such as the S&P 500, which only includes 500 large companies, the Wilshire 5000 encompasses thousands of stocks, reflecting the true diversity of the U.
Definition The term Global Supply Chain refers to a network of interconnected businesses and organizations that work together to produce and deliver products and services to customers across the globe. It encompasses everything from sourcing raw materials to manufacturing, logistics and distribution, all while being influenced by various economic, political and technological factors.
Key Components of a Global Supply Chain Suppliers: These are the businesses that provide raw materials and components needed for production.