The DAX Index is the benchmark index for the German equity market. It tracks the performance of 30 selected German blue chip stocks traded on the Frankfurt Stock Exchange, which represent around 80 percent of the market capitalization listed in Germany. The equities use free float shares in the index calculation. The DAX has a base value of 1,000 as of December 31, 1987. As of June 18, 1999 only XETRA equity prices are used to calculate all DAX indices.
DAX index was founded in 1 July 1988. It is the equivalent of the Dow Jones Industrial Average, and because of its small selection it does not necessarily represent the vitality of the economy as whole. The 30 participants of the DAX are companies well know like, Addidas, Allianz, Bayer, BMW, Commerzbank, Continental, Daimler, Deutsche Bank, Deutsche Lufthansa, Siemens. All the heavy industry of the Germany.
The main takeaway remains that the DAX is likely to climb to higher levels. On Monday with the positive NAFTA news the index had a nice movement to his next support level. The German equity index will most likely rise above today’s levels. The path towards the 13.000 level is in the corner.