Web Trader MT5
DAX is the German flagship stock market index, which tracks the 40 largest companies listed on the Frankfurt Stock Exchange. It is like the FTSE 100 of the UK or the S&P 500 of the US; it is the number that people go to when they want to take a quick read on the performance of German equities.
The industry, chemicals, automobiles, and financials comprise a major portion of the index, which reflects the structure of the German economy itself. Such names as Volkswagen, Siemens, BASF, and Deutsche Bank sit within it.
As the largest economy in Europe, with a strong export base to countries such as China and the United States, the DAX is vulnerable to the global trading environment, energy prices, and the well-being of major export markets. It is a total return index, meaning dividends are reinvested in the calculation, making direct comparisons with price-only indices, such as the Dow Jones, slightly misleading.
Example: In 2018, when trade tensions between the US and China spiked, the DAX sold off more violently than most other leading indices. German companies that were highly exposed to Chinese demand felt the heat first, and the DAX was quick and clear in reflecting that vulnerability.
