The martinwolf IT Index (Global Edition) is a report of our proprietary analysis using securities that are weighted according to the market value of their outstanding shares. The global edition of our Index combines our U.S., India and China editions, tracking companies and comparing them to public stock exchanges.
When we last checked in with the martinwolf IT Index three months ago, we highlighted the market's weak beginning and signaled that many hurdles remained before investors saw evidence of a global recovery. The bleak January performance threatened to erase the economic progress made by the end of 2015, and there were questions about the state of global growth and the ability and willingness for central banks to arrest worrying trends.
In February there came an inflection point in the markets, and since then economic indicators have been mixed. Domestically, there have been positive signs such as sustained wage growth and continued low inflation. But a holistic measure of the economy remains concerning. First quarter GDP grew an anemic 0.5 percent, and S&P 500 companies are expected to report their fourth period of quarterly earnings declines.
In this report, we explore how these economic conditions affect each of the core segments tracked in the martinwolf IT Index: IT Services & BPO, IT Supply Chain, Software and SaaS.We also look at the Chinese and Indian IT Services markets. O ur basket of Chinese technology stocks has almost entirely erased its stratospheric gains since the beginning of 2015, while the more mature Indian market is experiencing less volatility as its technology industry remains a bright sector.
View the entire Index here.
Description and Formula
The martinwolf IT Index is a market-value-weighted index. The representation of each security in the index is proportional to its last sales price times the total number of shares outstanding, relative to the total market value of the respective index.
Adjustments for securities being added to or deleted from the index, or capitalization changes, are made periodically. Stock splits and stock dividends are likewise adjusted for during the process. In the case of cash dividends, no adjustment is made.