Germany's blue-chip index is the most cyclical of the major western indices, with almost 80% of it comprised of economically sensitive industries, so it tends to post the biggest swings. As many of the 30 firms in the index are major multinationals, the DAX is also considered a geared play on global growth.
The basic materials sector, which is made up largely of chemicals groups, is the main heavyweight, accounting for just over a fifth of the index. Three-quarters of the stocks in the consumer goods sector are in the cyclical car and car parts industries.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
1,000 children hold over £100,000 in a junior ISA – how to grow tax-free nest egg for your childJunior ISAs can be a tax-efficient way to grow a nest egg for your child. We explain how they work
-
How to start investing: a beginner’s guideGetting started in investing is a great way to make your money work harder for you over the long term, as investments tend to outperform cash savings
