DAX 40 Today

The DAX (Deutscher Aktienindex — German Stock Index) is Germany's flagship equity benchmark, tracking the 40 largest companies by market capitalization and liquidity listed on the Frankfurt Stock Exchange (via the electronic XETRA trading system). Maintained by Deutsche Börse AG, it has been published since July 1, 1988 at a base value of 1,000.

Until September 2021, the DAX covered 30 companies (commonly called "DAX 30"). The expansion to 40 components was the first change to the index structure since its 1988 launch, bringing in 10 companies from the MDAX (mid-cap index). New entrants included Airbus, Porsche, Zalando, HelloFresh, Siemens Healthineers, and others.

Major DAX components as of 2025 include: SAP (software — largest component, ~10%), Siemens, Allianz, Deutsche Telekom, BASF, BMW, Mercedes-Benz Group, Volkswagen, Bayer, Deutsche Bank, Infineon Technologies, Adidas, Linde, and Munich Re.

A critical technical note: the DAX is a performance index (Performanceindex), meaning it includes dividend reinvestment. This is unlike the S&P 500 "price return" index that excludes dividends. If you compare DAX levels to S&P 500 levels directly, you are not comparing apples to apples — the DAX's reinvested dividends have compounded for 35+ years, making raw level comparisons misleading.

Germany is one of the world's top exporting nations — BMW, Mercedes-Benz, Volkswagen, BASF, Siemens, and SAP all earn significant revenues in USD, CNY, and other currencies. This creates a structural dynamic:

• Weak EUR → DAX benefits: When EUR weakens against USD, German car prices become cheaper for American and Chinese buyers. Overseas earnings translated back to EUR increase. DAX companies report stronger earnings — lifting the index.
• Strong EUR → DAX headwind: EUR appreciation squeezes export competitiveness and reduces the euro value of overseas revenues. This is why DAX often falls when EUR/USD spikes on ECB hawkishness or EUR strength events.
• China demand dependency: German automakers (BMW, Mercedes, Volkswagen) derive 25–35% of revenues from China. When China's economy slows or US-China tensions escalate, DAX auto components suffer disproportionately. The 2023–2024 slowdown in Chinese EV demand hurt German automakers and weighed on the DAX.

Germany's relationship with gold runs deep: the Deutsche Bundesbank holds approximately 3,352 tonnes of gold — the world's second-largest national gold reserve after the United States. Germany famously repatriated ~300 tonnes of gold from the New York Fed and Banque de France between 2013 and 2017 amid concerns about overseas storage.

For traders, the DAX-gold relationship flows through:

• ECB policy: ECB rate cuts weaken EUR and typically support gold (priced in USD). Euro zone economic weakness = ECB easing = EUR down = gold in EUR terms relatively stable while USD gold rises.
• Risk-off: When European recession fears mount, DAX falls — and gold in EUR terms often rises as investors seek safety. German investors have a historically strong preference for physical gold as a savings vehicle.
• Energy crisis impact: The 2022 energy crisis (Russia-Ukraine, gas supply cut) was particularly severe for Germany's energy-intensive chemical and industrial sectors (BASF shut plants). DAX fell. Gold and commodities rose. The correlation inverted from the typical risk-on pattern.