The Neuer Markt Sentiment Index tracks the level of optimism about the Neuer Markt in relation to the pessimistic and neutral expectations as well as the percentage change in these values from the previous week. The Neuer Markt Sentiment Index is not a forecasting instrument of Deutsche Börse; it reflects the market participants' expectations. The index often behaves like a contrary indicator. If pessimistic market assessments are predominant, this generally points to rising stock-market prices in the future. In phases with relatively long sideways movement, however, the expectations can move parallel to the price levels. Deutsche Börse provides an index history back to August 2001.
Sentiment indices are based on surveys of market participants. For the Neuer Markt Sentiment Index, Deutsche Börse will survey some 300 institutional and private investors on Thursdays for their assessment of whether they think the Nemax 50 equity index will move up, down or sideways in the next 30 days. One of the main quality features of the Neuer Markt Sentiment Index is the fact that only the assessments of active participants with investments in the market are surveyed. Deutsche Börse's role, as a neutral partner, is above all to ensure the quality and continuity of the data, prepare the data and anonymize it. Cognitrend evaluates the data, calculates and interprets the Sentiment Index.
