The German DAX 30: Great Market, High Volume
Often compared to the Dow Jones Industrial Average of the U.S, the DAX (Deutscher Aktien Index)
is composed of the 30 largest German companies that are traded on the Frankfurt Stock Exchange.
Germany is the largest and most important economy in Europe, making the DAX an influential
European index. Among the companies listed on the DAX 30 are BMW, Siemens, Adidas and Deutsche Bank.
Things to know:
- The companies that compose the index are selected based on market capitalization and order book volume,
and the components are reviewed every quarter.
- Most of the companies on the DAX 30 are also traded in the U.S., and therefore serve as a good indicator of
upcoming trends in the U.S. markets. Because the European market session heads the North American openings,
this can often provide a good indication as to which direction the U.S. markets will go.
- Companies from over 80 different countries are represented in the Frankfurt Stock Exchange, making the DAX more responsive to global
market influences such as natural disasters, wars, political unrest, and economic news. Smart traders know that keeping
an eye on current events is crucial in predicting how the market will respond. Therefore, it is important to follow economic
data especially from Germany and the European Union, including unemployment rates, job creation, interest rates, GDP
figures, and other economic benchmarks.
Contact us for more information on how to trade Europe’s most influential Index.