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The DAX and the CAC indexes represent the German and French markets respectively, but the EuroStoxx also includes companies outside those markets, including Aegon (Netherlands), Arcelor Mittal (Luxembourg), BBVA (Spain) and Nokia (Finland). Like the S&P 500, the index is based on free float market capitalization (i.e. total value of shares listed rather than the total size of the company), and is reviewed every September.

What drives the Euro Stoxx 50 price?

Basically, the price of large Eurozone listed companies. However, most of the companies in the index are either French or German, hence volatility in those markets will also hit the EuroStoxx. Because there are 50 companies in the index, the price of one company is less likely to affect it. But serious price action across European exchanges will move this index.

How volatile is the Euro Stoxx 50?

The index was founded in 1998, hence we have had some opportunity to see how it is affected during times of crisis. Since 2008 the volatility of the EuroStoxx 50 has tended to pick up when the Eurozone itself has been in difficulty. It has been a convenient way of expressing sentiment on the whole European project.

The Euro Stoxx 50 Price Chart



Here’s how you can trade the Euro Stoxx 50

The EuroStoxx 50 is widely available as the underlying market for futures and options, both exchange-traded and OTC. It is also quoted by Contracts for Difference and financial spread betting companies and is readily replicated by Exchange Traded Fund providers. Variants of the EuroStoxx 50 are also available – e.g. with specific sectors removed and replaced, or extended to all European bourses using the similar stock selection criteria.

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Stuart Fieldhouse

Stuart Fieldhouse has spent over 20 years in journalism and financial communications, including six years as a wealth management correspondent for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong.

Stuart has worked as head of content at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Stuart continues to work with hedge funds, private banks, stock exchanges and other financial institutions on their communications, data and marketing requirements.

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