Report by Renta 4 European markets opened lower (Eurostoxx 50 futures down 0.9%, S&P 500 down 0.6%, Nasdaq 100 down 1.3%) and there were sharp falls in Asia (Nikkei down 2%, South Korea’s Kospi down 8%). On the geopolitical front, another weekend of escalation in the Middle East, with fresh Iranian attacks on merchant ships, to which the United States has responded with its fourth round of strikes in a…

Report by Renta 4 European markets opened lower (Eurostoxx 50 futures down 0.4%, S&P 500 0.3%, Nasdaq 100 1%), dragged down by Asian markets, notably South Korea’s Kospi index, which fell by more than 7% following the publication of Samsung’s preliminary Q2 figures (full results expected on 30 July) which, despite operating profit having increased nineteen-fold, fell short of the highest consensus estimates and caused the memory giant to drop…

Analysis by José Manuel Marín Cebrián Yes, it is happening. A paradigm shift in the composition of the indices. The transition from an index based on value and profitability (earnings-weighted) to an index based purely on expectations and market capitalisation (growth/capitalisation-weighted) 1. The Conflict: Market Capitalisation against Fundamentals Historically, the S&P 500 has functioned as a quality filter thanks to the requirement for positive profitability (the requirement to report cumulative…