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.
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
See Tim Bennett's video tutorial: What is an index?
-
Is it time to ride the recovery in emerging markets?Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
Could the Enterprise Investment Scheme cut your tax bill?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
