Most Watched Stock Market Indices

Moneyflow When trading stocks, many good traders watch a variety of stock markets. Why do they do that and how do they do that? They do that for various reasons. They use other stock markets to get a feel of the overall stock market sentiments. This can be done by looking at the different stock market index or indices that track a basket of stocks in that stock market. So let’s take a look at which are the important stock markets that you should be looking at.

1. New York Stock Exchange (NYSE)

The New York Stock Exchange is the largest stock market with a market cap of USD 19,223 Billion as of 2015. Being the biggest exchange also means it has the most influence over the rest of the exchanges in the world. Any big movements in the NYSE will usually cause a similar movement in other markets in the same direction even though it is not the first market to open. Other markets tend to take the NYSE as the signal for their market opening direction.Indices to watch:DOW JonesS&P 100

2. NASDAQ Stock Exchange 

This is the second largest stock exchange in the world with a market cap at USD 6,831 billion. Similar to the NYSE, with it’s huge market cap, it has vast influence on the stock market movements of other countries.Index to watch:NASDAQ

3. London Stock Exchange 

The London Stock Exchange is oldest stock exchange in the world. In terms of market size, it ranks 3rd in the world at USD 6,187 billion. It is also closely watched by other Euro countries and has significant impact on the other stock markets in the world.Index to watch:FTSE 100

4. Tokyo Stock Exchange  

The Tokyo Stock Exchange is the largest stock exchange in Asia, and ranking number in the world, boasting a market cap of USD 4,485 billion.  This is also one of the earliest market to open which tends to send the mood for the Asia region.Index to watch:Nikkei 225

5. Shanghai Stock Exchange

2nd to Tokyo Stock Exchange is the Shanghai Stock Exchange ranking number 2 in Asia. The market cap stands at USD 3,986 billion.  This market recently triggered the world stock markets to fall after crashing on the first and second trading of the year at the start of 2016. Even though it ranks at number 5, it is closely watched as China’s economy is being used as one of the measure of the world economy especially when it is a manufacturing giant that exports to many other countries.Index to watch:SSE Composite Index

6. Hong Kong Stock Exchange

The Hong Kong Stock Exchange has a market cap of USD 3,325 billion. This market is closely watched by South East Asia countries and sets the tone for their market opening.Index to watch:Hang Seng Index

6. Euronext

The European stock exchange is based in Amsterdam, Netherlands and has various branches across Europe. Market cap is at USD 3,321 billion.Index to watch:Euronext 100

7. Toronto Stock Exchange

The Toronto Stock Exchange is the largest stock market in Canada. It is the leading in the mining and oil & gas sector. Market cap of this stock exchange stands at USD 1,939 billion.Index to watch:S&P/TSX Composite Index

8. Deutsche Borse Stock Exchange

This is the Stock Exchange of Germany. Being the key driver in the European countries, this stock market is also closely watched by it other European counterparts. Market cap of this stock exchange stands at USD 1,762 billion.Index to watch:DAX

9. Australian Securities Exchange

The Australian Stock Exchange has some impact on the Asia Pacific region. Market cap of this stock exchange stands at USD 1,272 billion.Index to watch:ASX 200

10. BM&F Bovespa Exchange

This is the stock market exchange based in Sao Paulo, Brazil. Noting this is one of the key BRICK countries, it is a good representation of the bigger emerging markets. Hence, similar to China, the market in this country is also used as an indicator to measure the health of the bigger world economy. Market cap stands at USD 824 billion.Index to watch:Ibovespa

Free Tips

You can track this indices very easily using Yahoo Finance to create a portfolio for all the indices that I have mentioned above. Refer to my other article on how to create a portfolio here.Alternatively, you can enter CNBC markets to get a quick overview (

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