World indices are indicators of price changes for a given group of securities. A stock market index can be described as a “basket” of stocks that are combined together on a common basis. Trading indices can be compared to open positions in several dozen stocks at the same time.

The most important thing is to determine exactly which stocks or bonds each index is composed of. The set of stocks included in the calculation of the spot index value determines the information that can be obtained by observing the dynamics of the course of that set.

In general, the main purpose of world indices is to create a strong indicator for investors to characterize the direction of quoted shares of companies in a particular industry. Studying the dynamics of major indices helps to understand the impact of certain events on the value of securities.

When investing in indices, do not forget that the reaction to published economic news may not correspond to expectations and forecasts.