Foreign companies should have a presence in the European Union or an EFTA state. They should continuously trade on Xetra, with a minimum period of 30 trading days since their first listing. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

  1. The vast majority of shares on the Frankfurt Exchange now trade on the all-electronic Xetra system, with a near-95% adoption rate for the stocks of the 40 DAX members.
  2. Join thousands of traders who choose a mobile-first broker for trading the markets.
  3. Some examples include the Consumer Price Index (CPI), which is a basket of general consumer goods weighted into an index and is used to measure inflation over time.
  4. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

Companies included in the DAX can have a maximum weight of 10%. The prices used to compute the index come from Xetra, an electronic trading system. The index tracks the performance of Germany’s 40 biggest companies by order book volume and market capitalisation. The DAX 40, also known as the DAX Index, is a blue-chip stock index following the largest German companies listed on the Frankfurt Stock Exchange. It’s also a reliable indicator of the country’s economic strength.

Private Companies

It’s considered to be the benchmark stock market index for the German economy. The DAX index, which tracks 40 large and actively traded German companies, is considered by many analysts to be a gauge for Germany’s economic health. The companies listed in the DAX are multinational concerns that influence the domestic German economy and the global economy as well. The success of these companies has greatly contributed to what is known as the “German economic miracle” or Wirtschaftswunder, a term that describes Germany’s rebirth after World War II. The DAX Index tracks 30 large and actively-traded German companies within the Frankfurt Exchange, which is the largest financial exchange in Germany. The DAX is the most prominent stock index for Germany, and it is considered to be a proxy for the performance of the German economy and market conditions.

Harness past market data to forecast price direction and anticipate market moves. The weight of any single company may be no more than 10% of the DAX capitalization. By March 9, 2009, the index had lost over 56% since its https://g-markets.net/ maximum recorded value on July 13, 2007. On September 3, 2021, the global index provider of Qontigo STOXX Ltd. announced an expansion of the DAX index. Airbus, Zalando, and Siemens Healthineers were among the additions.

What is the DAX Stock Index?

New delayed trade updates are updated on the page as indicated by a “flash”. The DAX Stock Index is calculated based on the free-float adjusted market-cap weighted index methodology. Join thousands of traders who choose a mobile-first broker for trading the markets.

Major Stock Indexes

However, the recovery of the global economy increased investors’ confidence and pushed the index up. In Summer 2007, the index surged to a record high of 8,000 points. The companies listed in the DAX are multinational companies that influence the German domestic economy and the global economy. It is worth keeping an eye on its movements if you are looking to invest in Germany.

The DAX is often used as a barometer for the overall health of the German economy. The German Stock Index is a total return index of 40 selected German blue chip stocks traded on the Frankfurt Stock Exchange. The equities use free float shares in the index calculation. The DAX has a base value of 1,000 as of December 31, 1987.

To be included in the DAX 40, a company must first be listed in the Prime Standard segment on the Frankfurt Stock Exchange. Companies that belong to this segment have to meet higher standards of transparency than companies listed on the General Standard segment. Additionally, the company should be continuously traded in Xetra with a public float of at least 10%. Another requirement is to have an office registered in Germany with most of its volume of shares traded in Frankfurt, and be headquartered in one of the EU countries. First, you can buy a share of a mutual fund or a popular ETF (exchange-traded fund) that tracks the performance of DAX 40.

The Xetra trading venue has been computing the index’s price every second since 2006, meaning investors can track its movements closely. The Barchart Technical Opinion rating is a 100% Buy with a Strengthening short term outlook on maintaining the current direction. Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets.

A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume. International investors can gain exposure to The DAX using a number of exchange-traded funds (ETFs) that trade on European exchanges. Constituents must generally have their shares listed in the Prime Standard segment (a segment of the EU-regulated market) to comply with these criteria. They should maintain their legal or operating headquarters in Germany.

Euro and DAX lifted after survey shows German economic contraction less severe than feared

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An index is a method of tracking the performance of a group of assets with prices in a standardized way. Some examples include the Consumer Price Index (CPI), which is a basket of general consumer goods weighted into an index and is used to measure inflation over time. The companies in the DAX index span a wide range of industries. For example, Bayer AG is a pharmaceutical and consumer health company founded in 1863 and is well-known for its pain and allergy-relief products. Allianz SE is a global financial services company that focuses on providing customers with insurance and asset management products. Adidas AG develops, manufactures, and markets popular athletic footwear, apparel, and equipment.

Get virtual funds, test your strategy and prove your skills in real market conditions. The vast majority of shares on the Frankfurt Exchange now trade on the all-electronic Xetra system, with a near-95% adoption rate for the stocks of the 40 DAX members. The DAX hanging man candle family of indices also includes the MDAX, SDAX, and TecDAX indexes. You can use the index to draw comparisons between its 30 individual constituents or companies. This allows you to determine which companies perform similarly so you can maximize your returns.

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