Second, as pointed out by Eun and Shim (1989, 243), despite the nonsynchronous nature of the data employed, the results of VAR analysis based on the structure of time zone differences can still provide useful insights into the international transmission mechanism of stock index future
A stock index future
is just like a port belly future, only instead of being a commitment to buy pork, it's a commitment to buy a "basket" of stocks.
In the case of a stock index future
, speculatorsbet that a group of stocks is going to go up or down in value.
The Saudi Stock Exchange (Tadawul) is expecting share listings to pick up next year while the launch of stock index futures
should smooth an influx of money from overseas, reported Reuters .
and European stock index futures
. The Nikkei 225 gained by 0.8%, while S&P 500 futures were showing a 1.1% advance.
As most regional markets slipped along with US stock index futures
earlier in the day, institutions decided to take profit, which saw the index go into free-fall mid-day to hit intraday low by 708 points.
The exchange also rolled out the dynamic price banding mechanism designed to stabilize price fluctuations applicable to the spot month and next calendar month contracts of TAIEX and mini-TAIEX, and that is set to expand to other stock index futures
The basis of CSI 300 stock index futures
is the difference between the CSI 300 spot index and futures index and plays an important role in the information transfer of the capital market.
China CSI300 stock index futures
for January rose 0.6 percent, to 3,224, 1.3 points below the current value of the underlying index.
As a powerful financial tool, stock index futures
can help curb abnormal stock market fluctuations and effectively avoid investment risk by virtue of the primary functions of price discovery, hedging, and arbitrage; moreover, this tool is widely used in both developed and developing countries.
US stock index futures
were lower ahead of another round of earnings reports and after data showed the US trade deficit surged to its highest level in nearly 6-1/2 years in March.