DAX Today DAX 40 Index Chart and Forecasts

A hold above the 50-day EMA would support a break above the 200-day EMA to target the 16,007 resistance level. However, a break below the 50-day EMA would give the bears a run at the trend line. However, weaker-than-expected ZEW numbers would see the DAX test the trend line. A break below the trend line would bring the 15,663 support level into play.

A break above the 50-day EMA would give the bulls a look at the 16,007 resistance level. According to figures from Monday, 1-Year US Consumer Inflation Expectations increased from 3.55% to 3.63%. The figures aligned with economic forecasts for the US inflation rate to rise from 3.2% to 3.6% in August.

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However, the 50-day EMA rejected a DAX run at the 16,007 resistance level. The 14-Daily RSI reading of 48.63 shows the DAX has room to fall through the trend line and 15,663 support level before entering oversold territory. The lack of stats leaves US Treasury Yields and the US equity markets to provide late direction. While the ZEW Survey is unlikely to influence the ECB monetary policy decisions, a marked decline would signal darker clouds ahead for the German economy. Inflation numbers from China and easing bets on further Fed rate hikes provided support.

However, cracks in the US economy could redirect the focus to the economic outlook, which remains DAX-negative. On Wednesday, economists predict the US CPI Report will reveal softer core inflation. The expectation of softer core inflation continues to fuel bets on the Fed ending its monetary policy tightening cycle. German wholesale prices for August will draw interest early in the European session.

Understanding the DAX Stock Index

You can use the index to draw comparisons between its 30 individual constituents or companies. This allows you to determine which companies perform similarly so you can maximize your returns. It’s similar to the Dow Jones Industrial Average (DJIA) in the United States in this sense.

• However, banks and auto stocks were among the front runners for the second session.
• For example, Bayer AG is a pharmaceutical and consumer health company founded in 1863 and is well-known for its pain and allergy-relief products.
• For this reason, the DAX and its performance are also regarded as an indicator for the German share market as a whole.
• DAX member companies represent roughly 80% of the aggregate market capitalization that trades on the Frankfurt Exchange.

For example, shares must be listed in the Prime Standard of the Deutsche Börse. In this exchange segment, companies must meet specific international transparency requirements. For example, the companies must present regular quarterly reports and annual financial statements as well as hold an annual analyst conference. Easing bets on further ECB and Fed rate hikes continue to support the DAX. However, investors will be mindful of the likely influences of the US CPI Report on the global financial markets. The DAX was created in 1988 with a starting index level of 1,163 points.

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The weight of any single company may be no more than 10% of the DAX capitalization. As a blue-chip stock market index, the DAX is very similar to the Dow Jones Industrial Average (DJIA), which also tracks large, publicly owned companies. Federal Reserve chair Jerome Powell downplayed the chances of larger interest rate hikes ahead, giving equity investors some comfort. However, German and Eurozone ZEW Economic Sentiment numbers will likely have more impact on buyer appetite. Economists forecast the German ZEW Economic Sentiment Index to fall from -12.3 to -15.0 and the Eurozone Index to decline from -5.5 to -6.2. However, banks and auto stocks were among the front runners for the second session.

DAX member companies represent roughly 80% of the aggregate market capitalization that trades on the Frankfurt Exchange. The index was historically comprised of 30 companies but was expanded to 40 as of Sept. 3, 2021. The DAX—also known as the Deutscher Aktien Index or the GER40—is a stock index that represents 40 of the largest and most liquid German companies that trade on the Frankfurt Exchange. The prices used to calculate the DAX Index come through Xetra, an electronic trading system. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume. Better-than-expected German wholesale prices and German ZEW Economic Sentiment figures would give the DAX another run at the 50-day EMA.

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Despite economists predicting an uptick in headline inflation, economists forecast core inflation to soften from 4.7% to 4.3%. The slower rate of decline in producer prices and rise in consumer prices suggested a moderate pickup in demand at the producer and retail levels. For example, Bayer AG is a pharmaceutical and consumer health company founded in 1863 and is well-known for its pain and allergy-relief products. Allianz SE is a global financial services company that focuses on providing customers with insurance and asset management products.

The weight of each individual security in the index is proportionate to the total market capitalization. In total, the companies listed in the DAX represent around 79 per cent of the German stock exchange value. For this reason, the DAX and its performance are also regarded as an indicator for the German share market as a whole. Many DAX constituents are large multinational companies that have a high level of significance to the global economy in addition to the German domestic market. The index represents 80% of the total market cap of listed German stock corporations, making it an important benchmark for domestic and international investors.

A less marked decline in the wholesale rate of inflation would signal a pickup in demand. The free-float method of calculating market cap excludes locked-in shares, such as shares owned by a company’s executives. The vast majority of shares on the Frankfurt Exchange now trade on the all-electronic Xetra system, with a near-95% adoption cvp analysis full form rate for the stocks of the 40 DAX members. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Germany 40-bearish contrarian trading bias. Softer guidance from mega-cap tech stocks could send stock markets back to square one, one analyst said.

Foreign companies should have a presence in the European Union or an EFTA state. They should continuously trade on Xetra, with a minimum period of 30 trading days since their first listing. The DAX index, which tracks 40 large and actively traded German companies, is considered by many analysts to be a gauge for Germany’s economic https://1investing.in/ health. The companies listed in the DAX are multinational concerns that influence the domestic German economy and the global economy as well. The success of these companies has greatly contributed to what is known as the “German economic miracle” or Wirtschaftswunder, a term that describes Germany’s rebirth after World War II.

International investors can gain exposure to The DAX using a number of exchange-traded funds (ETFs) that trade on European exchanges. In a different twist from most indices, the DAX is updated with futures prices for the next day, even after the main stock exchange has closed. Changes are made on regular review dates, but index members can be removed if they no longer rank in the top 45 largest companies, or added if they break the top 25. Constituents must generally have their shares listed in the Prime Standard segment (a segment of the EU-regulated market) to comply with these criteria.

Interactive daily chart of Germany’s DAX 30 stock market index back to 1990. The current price is updated on an hourly basis with today’s latest value. The current price of the DAX 30 Index as of September 14, 2023 is 15,805.29. In order to be included in the DAX, a company must fulfill certain criteria.

Adidas AG develops, manufactures, and markets popular athletic footwear, apparel, and equipment. China consumer and producer prices for August drove demand for riskier assets. The producer price index fell by 3.0% year-over-year in August versus -4.4% in July. Consumer prices increased by 0.1% year-over-year versus a 0.3% decline in July. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Investor sentiment toward Fed and ECB policy intentions continues to offset recessionary jitters.