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Euro 50 (EUSTX 50) is drawing attention from the world as a representative stock index in Europe. Euro 50 is made up of 50 good stocks selected from euro area Austria, Belgium, Finland, Netherlands, Portugal, Spain, Luxembourg, Italy, Ireland, Germany, France, 11 stock markets. It is a stock index that STOXX company calculates and publishes.
Among the countries involved in Euro 50, in France it accounts for 40% of the largest composition. Next, it is about 30% in Germany, about 10% in Spain, about 7% in Netherlands and Italy, about 4% in Belgium. Even if it says Euro 50, you can see that Germany and France account for the majority.
By sector, the financial sector is about 26%, capital goods, service sector and health care are each about 11%, daily necessities and consumer goods services are about 10% respectively, after that energy and telecommunications. There are characteristics that the financial and service industries are deeply involved
The company with the highest market capitalization is the Total of French energy sector, which accounts for about 5%. Bayer of Germany, famous as a pharmaceutical company and sanofi of France also ranked in the second and third place. As for the financial sector, Allianz in Germany and Santander Bank in Spain are top in the component ratio.
The euro is the currency employed by 19 countries among the countries that are members of the European Union (EU). Even if it is not possible to compete with the US dollar in individual European countries, it was established from the perspective that if a number of countries gather and operate as a single currency, it can become a basic currency aligned with the dollar.
Indeed, Euro is now the currency that is the mostly traded next to the dollar, and the connection with the world economy is getting stronger. Also, since it is composed of several countries, even if the economic risk of one country gets bigger, there are strengths that can be covered by other countries. This is a strongly different part of America and EU which is stronger. On the other hand, there are also histories that have been frequently exposed to the financial crisis due to the involvement of many countries.
A new record is the European crisis that occurred in 2010. This was a chain that was initiated by the Greek economic crisis that occurred in 2009, and when one country goes down, it revealed the vulnerability that other countries will fall together. In recent years, the EU 's economic crisis accompanying with the withdrawal of the UK' s EU is also a new record. Every time a European crisis occurs, Euro 50 is crashing down.
However, although it will go up and down after 2011, it will be steady from a long-term perspective. It is because the constituent company is the representative company of the world and the crisis does not occur immediately in the company even if the European economic crisis occurs. Among stock indices related to Europe, it will be a highly stable index.
Euro 50 is deeply involved in the economies of European countries. The way to know the economic situation of the country is the growth rate of GDP. The higher the GDP, the better the economy is. GDP growth in Italy and Spain, as well as Germany and France that occupy a high percentage of Euro 50's composition ratio, is steady. Steady GDP is expected to continue in the future, and it is hard to think a marked drop in the economy in the near future.
In the general election held in the UK, deciding to withdraw from the EU shook the world sharply. After that, the division of the EU has rapidly increased. A lot of euro area is also included, and the division of the EU means the collapse of the euro. As the EU 's division crisis increases, Euro 50 has a declining correlation. However, in France and Germany, which are important countries with Euro 50, Mr. McClell and Mr. Merkel, which are negative to the EU division respectively, overwhelmed the presidential election, The crisis of EU division has become smaller.
The economy of Germany and France is heavily involved in Euro 50. As the index of CAC, which is made up of the top French brands, and DAX which is made up of the top brands in Germany, declines, Euro 50 also has characteristics that are easy to go down. When looking at Euro 50's price movements, it is fundamental to check stock indexes within the euro area.
When the European government debt problem becomes serious, the interest rate of government bonds in countries with financial instability may rise, and the financial market turmoil may become serious. In Europe, they are dealing with bad loans, increasing capital adequacy ratio to raise capital, but if financial institutions suppress lending, they will lower the economy by credit contraction. In that case, the Euro 50 may also fall.
Although it is hard to imagine the concern of the financial system at the moment, it is a field with a high risk in the long term view. Moreover, even if the fiscal deficit increases and interest rates rise over the long term, there is a possibility that economic uncertainty will be expanded.
Euro 50 is an important stock index within the euro area that is made up of corporate stocks representing the world. Price movements of Euro 50 have a great influence on other equity indices and are also drawing attention in CFD trading. It is an index driven by the French and German economies, but economies such as Spain and the Netherlands are deeply involved. It is also difficult to think that it is unlikely that price movements will occur significantly with only one factor because the breads of the constituent brands are wide. As there are many countries that make up, we need to anticipate price movements with a broad perspective