new york (reuters) – the euro changed recently, wall street may rear its head in the next few days with the annual revision of the index ftse russell, who is expected to benefit several big names in the industry.
ftse russell announced friday its amendments, and analysts expect a rise in power of the techs in the growth index values, which serves as a reference for managers of portfolio.
the increased weight of sector due to its increased about 20% since the beginning of the year, a rise which explains in large part the correction.
the large value of sector could see their weight increase by more than 3% in the index values of growth and the first of them, apple would need to be classified as 100% growth rate last year after being split between “growth” and “value”.
the importance of the techs could be uncomfortable, some managers, but they will have no choice but to follow their wallet case growth index values.
the index value of russell, which focuses on the prospects for growth, but the recovery is expected to see a rise in rank values of health and consumer affairs is not essential. i’m in the index are increased to 2.6% and 2.4%, respectively.
“basically, what has worked well in this year’s growth, and what has not worked in” value “, is desanctis strategist at jefferies, steve, in new york city.” this is not necessarily right, but that’s the idea. “
sudden burst of volatility
the interest of the investors, the calibration indices of russell is that it generally yields the higher volumes of the year, which should lead to a sudden burst of volatility. the cboe vix index, so that the measure has exceeded the threshold of 20 since the presidential election in november.
credit suisse analysts anticipate at this time a trade volume of $49 billion on 23 june, seven times more than the average of the recent sessions.
the ftse indices of russell is one of the indicators used in the united states as reference or, as benchmarks over 8.6 billion of assets in the firm.
at the level of values, ivan cajic, head of research at vsi index in new york, is expected to 10 entries in the russell 1000, but considers that some 400 enterprises will be affected by the revision.
in contrast to standard & poor’s, which updates over the water, the composition of the indices, the most is the s & p 500, ftse’s review only every year at the end of june.
“it’s not that index funds, which are between the announcement of the review and in the days before,” says cajic to explain the excess volatility.
to be sure, snap, all made since its inception in stock market three months ago, will not be in a clues, russell. due to the unusual structure of shareholder group instant messaging (securities exchange did not have voting rights), ftse, russell decided to postpone its decision pending a thorough analysis.
“we need to look more closely, because there is the possibility that this type of structure is increased, particularly in the technology sector,” said mat lystra, an analyst at ftse russell in seattle.
waiting for the announcement of russell will, in any case, as the private market in important economic statistics and business performance this week.
throughout the week, the dow jones industrial average was 0.47% and the s & p 500 was a performance neutral (0.01%). the nasdaq composite, high technology content, decreased by 0.93% while maintaining a gain of 14% since the start of the year, compared with increases of about 8% for the dow and the s & p.
(with the help of megan davies, veronica poker, for service in french)
copyright & copy;, thomson reuters
Translated by forexguides.info Team