European Markets

What this unit covers

Get a brief, grounded overview of the major European exchanges and indices, and how relevant they are to Indian markets.

By the end you will be able to

• Name the major European exchanges and indices and what each represents.
• Explain how European indices follow the same logic as the Nifty or Sensex.
• Apply a recognition versus relevance check before reacting to foreign market news.

How it starts: A Familiar Name, Falling

1. Your phone shows a headline that the FTSE 100 has fallen 2 percent.
2. You hold Indian mutual funds worth 3 lakh rupees, all in Indian companies.
3. Does a fall in a British index change anything about what you hold?

Words you will meet

FTSE 100

An index tracking about 100 of the largest companies listed on the London Stock Exchange.

DAX

An index tracking the largest companies listed on Germany's Deutsche Börse.

index

A basket of selected companies used to represent how a market or exchange performed.

exchange

A marketplace where shares of listed companies are bought and sold, such as the NSE or the London Stock Exchange.

In this module: Global Markets

1. US Markets
2. European Markets (this unit)
3. Asian Markets
4. How Global Markets Affect India