General presentation of the DAX 30:
The DAX 30 is the major German stock exchange index, equivalent to the French CAC 40. This index is that of the Frankfurt Stock Exchange. But one of its major particularities concerns the volume of transactions that it generates which makes it the highest traded European index worldwide.
As indicated by its name, the DAX 30 uses the quotations of the best quoted 30 large German businesses, with the aim of providing a realistic overall view of the country’s economic health with all sectors of activity represented. The companies quoted are essentially selected according to their representation of the country’s economic health. Of course, this list changes regularly according to movements in the prices, profits and activities.
If we study its composition in detail we can logically find several large automobile sector groups, as well as several banking groups.
A technological index:
Another peculiarity of the German Index DAX 30, is that it is a reference for German technological values in the sense that it represents these said values, including the sectors of automobilism and bank, the same way as the NASDAQ in the USA.
The other sectors represented by DAX30 are those of energy and computer science. This technological orientation implies therefore that certain companies that are part of this market are not based in Germany but abroad.
History and movements of the DAX 30:
The DAX30 is undoubtedly one of the European indices that has experienced the strongest and most regular rise, displaying a marked historical increase overall with a strong volatility. It achieved its highest historical rate in 2000 at 8,100 points, just before the financial crisis that caused a loss in points.
The volumes traded on the German technologies market have up to now been very high, the volatility of this index is therefore also extremely high and offers excellent opportunities for profits over the short and the long term.
Some advice for trading on the DAX 30 stock market index:
As is the case for all the major stock exchange indices, trading on the DAX30 should not be approached in a haphazard manner, and it is important to understand the different sectors of activities that are represented. Of course, it is not required to undertake advanced analyses of the results of the thirty largest businesses that are represented, simply have a general oversight of the economic health of the major sectors represented.
To direct your choice towards the rise or fall you will also need to monitor the economic calendar that often publishes highly influential data on the DAX 30. This is the case for all German economic statistics such as the GDP, Bond interest rates or the figures relating to industry and production that can indicate to traders which general direction to follow.
But it is also important to take into account the European data that can in certain cases favour or disfavour certain economic sectors. For example, a fall in the Euro interest rate will undoubtedly increase the competitiveness of European companies and consequently cause a rise in the DAX 30 rate.