Most important indices?

[kalubah]

When Dow Jones moves in any direction the the rest of the world will follow (generalising a bit). Sure S&P 500 and Nasdaq can influence markets aswell, but my experience tells me Dow jones is the #1 index to follow.

Now my question:
What is the European equivalent? When the US markets are closed, what index does the world follow? My guess would be DAX or FTSE but none of them seem to stand out as Dow Jones.

Regards
Karl

 

[GCC]

So isn't the conclusion obvious: there is nothing mightier than the mighty Dow!

 

[austrader85]

Hi Kalubah

Google "world market correlation table" in images and you will find what you're looking for. Shows how each market affects the other.

 

[kalubah]

Hi Kalubah

Google "world market correlation table" in images and you will find what you're looking for. Shows how each market affects the other.

Thanks Austrader85.
I found two tables showing two different things.
* One how the world indices correlates with DJ. Does this really tell me anything about how influential the markets are?
* The other table is more interesting, showing indices' proportion to the world market.
UK 9.3% ,Germany 4.1% and France 3.8%. Looks like the UK should be more important than the others. However, I think there might be a psychologial aspect to consider aswell. If you think about it, maybe S&P500 should give a better picture of US economy than the DJ. Still we stick to the DJ. Why? Out of habit I guess.

 

[tar]

S&P500 is the leader not the DOW

 

[jetus]

I agree, the ES is a much more effective leading indicator than the DOW, and the Nasdaq (and Nasdaq's bank sector $bank) has been a the leader recently for all three.

Does anybody have any input about what is the leading indicator between the DAX, Stoxx50, CAC, futsee?

 

[tar]

If u look at it from volume prospective , Stoxx50 futures has more volume than the dax , and the Ftse futures has much less volume than both Dax and Stoxx50 .

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