Worldwide Stock Exchanges Compared

March 22, 2021 at 5:37 am Leave a comment

The development of the worldwide stock markets seems to be significantly correlated. Daily, we look at the DAX as a forerunner for the US exchanges’. In our latest publications, we shared the DAX, FTSE, and CAC stock market composition. Today, we give a relation of the markets by size, based on market capitalization.

A stock exchange is a marketplace where stockbrokers, traders, buyers, and sellers can trade in equities products. The largest exchanges have thousands of listed companies. These companies sell shares of their business, allowing the general public to invest in them. The oldest exchange worldwide is the Frankfurt Stock Exchange, founded in the late sixteenth century.

The New York Stock Exchange (NYSE) and the NASDAQ are the largest stock exchange operators worldwide. The US stock exchanges account for 56% of the world’s stock value exchanged by market capitalization.

Largest stock exchange operators worldwide as of January 2021, by market capitalization of listed companies (in trillion U.S. dollars)

Worldwide Stock Exchanges by Market Capitalization

The European exchanges open about six hours ahead of the US exchanges, and such we take their development as a reference for the US trading session to come.

While nearly every country in Europe has a stock exchange, only five are considered major, reaching a market capitalization above one trillion U.S dollars.

European Stock Exchanges Ranked by Market Capitalization 2021 (bill. USD)

Biggest European Stock Markets by Market Capitalization

European stock exchanges make up two of the top ten major global stock markets. Europe’s biggest stock exchange is the Euronext which combines five markets based in Amsterdam, Brussels, Dublin, Lisbon, London, Oslo and Paris. As of December 31, 2020, the luxury goods company LVMH Moët Hennessy Louis Vuitton was the largest company listed on the Euronext Stock Exchange by market capitalization. Globally, the Euronext Stock Exchange is the seventh-largest.

What stands out in the above chart is the Swiss Exchange. With a population of 8.5 million people, compared to Germany, Switzerland has about 10% of the population but a very sizable stock exchange. By in sector composition closest to the US exchanges, we pick the DAX as a reference point.

In an overview, this is how the S&P 500 and the DAX 30 compare by sector:

DAX and S&P 500 Compared by Sector Share

Today, March 22, 2021, the DAX opened lower, triggered by fear of a third COVID-19 wave. However, the DAX in its session recovered and prints about at par to Friday’s close.

DAX and S&P 500 Development Compared

Six Months Development of the DAX and the S&P 500

For now, we mostly focus on shorter-term opportunities indicated by the NLT Timeless Trading Concept, where we simplify life for you, letting the chart will tell when to buy or sell!

Here an example:

E-Mini S&P 500 Futures on Friday, March 19, 2021, on the NLT Timeless Chart

E-Mini S&P 500 Futures Contract on the NLT Timeless Chart

We highlighted two trading opportunities:

  • Long at 11:54 a.m. ET
  • Short into the close

Both trading opportunities gained about 8-points or stood for a value change of the underlying contract of $400 each.

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Entry filed under: activity based trading, Algorithmic Trading, Futures Trading, Investor Education, making money trading, never loss trading, S&P 500, S&P Emini, sector development, Stock Market, Stock Market Index, Technical Analysis, trading system.

USA and UK Stock Markets Compared Measure and Follow Money Flow

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