DAX

The DAX is Germany’s blue-chip index, the most cyclical of the major western indices, with almost 80% of it comprised of economically sensitive industries.

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.

Financials, industrials and technology are further significant cyclical sectors.

See Tim Bennett's video tutorial: What is an index?

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