Dow Jones EURO STOXX50 Index
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- Metadoro first
Markets of the Old World were far from proceeding at a high pace after peaking early in April. However, a day is going to come when some European assets will make up for their previously lost ground. The futures contracts for difference (CFD) for the Euro Stoxx 50 index composed of blue-chip stocks from all leading countries in the Eurozone eventually pushed upward after springing off the psychological support around 4,750 points. The major health barometer of the EU investment sentiment added 0.86% this Monday to approach a 4,850 area for the beginning. Shares of Hermes (+4.75%), Adidas (+3.18%), Munich Reinsurance (+2.93%), Inditex (+2.87%), SAP SE software and business management solutions (+2.73%), Siemens (+2.71%) and BMW (+2.66%) were seen among the best performers of the day, with a Germany-based SAP SE (+65.0%), an Italian multinational banking group Unicredit (+49.3%) and a Dutch-rooted e-commerce operator Prosus (+43.1%) being the top-3 companies in terms of year-to-date price gains. One of my favourite stocks, Airbus Group (AIR), gained for the fourth consecutive days to conquer its €150 barrier.
Rosy prospects for stakeholders and index investors are distinctly noticeable due to the European Central Bank's (ECB) clearer intention to continue cutting borrowing costs before the year-end. A few comments from the Governor at the Bank of Greece and one of the ECB policymakers Yannis Stournaras provided the European bulls with a stark reminder of the regulator's currently firm stance. At the very first working day of the month, he shared a view that the ECB "will continue cutting interest rates in December". This remark freshly made at a conference in Athens luckily coincided with new historical highs in the S&P 500 broad market indicator of Wall St above 6,050, as well as in the tech-heavy Nasdaq Composite during the same trading session. Such synchronization is fundamentally removing the last obstacles for the Euro Stoxx 50 to pave the path for the higher goals, supposedly above 5,100 points, in its simultaneous Santa rally with the US indices, which appears to have already started. Even Trump's tariff threats seem to be powerless to revoke this wave of optimistic mood.
Dow Jones EURO STOXX50 Index
- The index is revised every year in September and has stocks of 50 largest Eurozone companies. Adidas, Airbus, Allianz, BASF, Bayer, Enel, Eni, Danone, Intesa Sanpaolo, L'Oréal , Nokia, Philips, SAP, TOTAL, Unilever, Volkswagen are among companies listed in the index;
- Eurozone’s macroeconomic data has strong effect on the index. Rising GDP, industrial production, employment, retail sales, ZEW index of business activity all support the index. If this data is negative, it will likely result in a declining index;
- The index has strong correlation with the U.S. S&P 500 broad market index, as Eurozone has strong trade relations with the United States. The index itself has an effect on European stock indexes;
- The index is very sensitive to the actions of the European Central Bank (ECB) as the monetary policy of the European monetary regulator directly affects the business performance of companies in the Eurozone. Rising interest rates, borrowing cost, declining monetary supply cuts, corporate profits, and consumer demand affect the index. Monetary tightening puts pressure on the index, while easing monetary policies support the index.
- High inflation in the Eurozone puts pressure on the index. If inflation is far above the 2% target, it may lead to additional monetary tightening by the ECB. If inflation is below the target, retail sales are likely to expand, which supports the index;
- The EURO STOXX50 index is a risky asset and reacts to risk appetite and investors’ sentiment. Positive developments in the global economy and geopolitics support the index, while uncertainties, stress, and geopolitical tensions put pressure on the index;
- The index is a diversified asset and is suitable for conservative and long-term investors. It has lower volatility compared to currencies, energies, and individual stocks;
- The index could be traded via CFDs, futures, or designated ETF’s;
- The index is linked to the European stock market’s opening hours, but futures and CFD trading on the index continues mostly throughout a 24/5 basis, excluding weekends. So, the index may open with a gap if something very important has happened during a weekend.
| Ticker | EUR50 |
| Contract value | 10 EUR x EUR50 Index |
| Maximum leverage | 1:100 |
| Date | Short Swap (%) | Long Swap (%) | No data |
|---|
| Minimum transaction volume | 0.01 lot |
| Maximum transaction volume | 100 lots |
| Hedging margin | 50% |
| USD Exposure | Max Leverage Applied | Floating Margin |
|---|
