Market Watch
The Australian Stock Report watches many markets over the world. Below is a breakdown of market watch:
The S&P ASX 200 (XJO) is the main barometer of Australian share market activity. It is made up of the 200 largest stocks by market capitalisation traded on the Australian Stock Exchange, and includes the 30 stocks we track on a day to day basis in the two right most columns.
The Dow Jones is the main barometer of US share market activity. It is made up of 30 of the largest stocks that are traded on the New York Stock Exchange, and includes stocks such as IBM, Intel, Microsoft, Johnson and Johnson, and McDonalds. Movements on the Dow often affect our market, as it is widely seen as the most watched barometer for the health of equities in the world.
The NASDAQ is the main barometer of technology stocks in the US (and effectively the world). It includes stocks such as Apple Computer, Yahoo! and Google.
The FTSE is the main barometer of share market activity in the United Kingdom. Our major resource stocks BHP Billiton (BHP) and Rio Tinto (RIO) also trade on the FTSE, and their fortunes here are often influenced by movements on the UK markets. Other Australian stocks that trade in the UK include Brambles Industries (BIL) and National Australia Bank (NAB).
The Nikkei is the main barometer of share market activity in Japan. As Japan is one of Australia’s major trading partners, being a major consumer of our raw materials. For this reason, the health of the Japanese market does have an influence on our market.
So by watching these markets, we can identify some of the potential influences on our market on a day to day basis. We also have a snap shot of all the major geographical segments (US, Europe, Asia) and many of our major stocks trade in these markets.
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