DAX is one of the leading market indices in the world. It is comprised of the biggest companies listed in the Frankfurt Stocks Exchange by market cap. In other words, it is the Dow Jones Industrial Average of Germany.
The biggest companies in the index are SAP, Siemens, Allianz, and BASF which have a market capitalization of £113B, £103B, £83B, and £81B. Other companies in the index are Bayer, VW, Daimler, and BMW among others.
In the past five years, the index has had a return of more than 50%. It has thus underperformed its global peers like S&P 500, Dow, and Nikkei, which have gained by more than 70%. The underperformance has come from companies like Deutsche Bank, Eon, and VW. Deutsche has suffered hefty fines, Eon has suffered from increased costs of operations, while VW has suffered from a major emissions scandal. YTD, it has dropped by about 3% with the key underperformers being Deutsche, Lufthansa, Merck, and Beiersdorf.
The index reached a multi-monthly low of £11,821 early this month, and started to recover, reaching a high £12,589 a few days ago.
The index is made up of companies that export most of their products around the world. Companies like BMW and VW are some of the biggest brands in the United States. As such, the new tariffs decision may continue to weigh down on the index. At this point, while the index may continue moving higher, markets will be cautious waiting for the implications of a potential trade war.
DAX is one of the leading market indices in the world. It is comprised of the biggest companies listed in the Frankfurt Stocks Exchange by market cap. In other words, it is the Dow Jones Industrial Average of Germany.
The biggest companies in the index are SAP, Siemens, Allianz, and BASF which have a market capitalization of £113B, £103B, £83B, and £81B. Other companies in the index are Bayer, VW, Daimler, and BMW among others.
In the past five years, the index has had a return of more than 50%. It has thus underperformed its global peers like S&P 500, Dow, and Nikkei, which have gained by more than 70%. The underperformance has come from companies like Deutsche Bank, Eon, and VW. Deutsche has suffered hefty fines, Eon has suffered from increased costs of operations, while VW has suffered from a major emissions scandal. YTD, it has dropped by about 3% with the key underperformers being Deutsche, Lufthansa, Merck, and Beiersdorf.
The index reached a multi-monthly low of £11,821 early this month, and started to recover, reaching a high £12,589 a few days ago.
The index is made up of companies that export most of their products around the world. Companies like BMW and VW are some of the biggest brands in the United States. As such, the new tariffs decision may continue to weigh down on the index. At this point, while the index may continue moving higher, markets will be cautious waiting for the implications of a potential trade war.
The post DAX Technical Analysis: Caution Ahead appeared first on Forex.Info.
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