The DAX 40 (Deutscher Aktienindex) groups the 40 largest caps of the Frankfurt stock exchange. SAP, Siemens, Allianz, Deutsche Telekom dominate. Often seen as the best barometer of European economy — more so than CAC 40 or Eurostoxx 50.
Since September 2021, the DAX was expanded from 30 to 40 stocks to better reflect German economy diversity. Top 10 by weight in April 2026:
Important German specificity: the DAX is a TR (Total Return) index by default. Dividends are reinvested in index calculation, unlike CAC 40 or S&P 500 which are "Price Return" indices. So when we read "DAX at 22,000 points", that includes dividends since inception — making it visually superior to European peers (but with similar risk profile).
Major sectors: technology (SAP, Infineon) ~25 %, industrial (Siemens, BASF, Mercedes, BMW) ~30 %, financial (Allianz, Deutsche Bank, Munich Re, Commerzbank) ~20 %.
Germany weighs about 25 % of eurozone GDP and remains its largest economy since 1991. When Germany coughs, Europe gets sick. Several structural factors explain the DAX's importance:
Performance: over 20 years, DAX delivered ~7 %/year (TR), below S&P 500 (~9 %/year Price Return + 2 % div = 11 % TR) but above CAC 40 (~5 %/year).
Good news: the DAX is PEA-eligible. It's the only major foreign index (along with other European indices) benefiting from French tax wrapper.
Main options:
French tax specificity: on PEA, after 5 years, capital gains tax-exempt (only 17.2 % social contributions). Over 10-20 years, PEA gains several points of annualized return vs regular brokerage.
When to buy? The DAX is cyclical: its best entry points are historically after a German recession or geopolitical shock (2009, 2012 Greek crisis, 2020 covid, 2022 Ukraine). Conversely, after 2-3 years of continuous rise (like 2024-2025), correction risk increases.
TotalEnergies shares are down after the company reported second-quarter results that were weaker than those of its British competitors. The European oil sector is showing mixed performance.
Canadian mining company TRX Gold reports results that fall short of market expectations. Both earnings and revenue miss analysts' estimates.
Gediminas Simkus, a member of the ECB’s Governing Council, announced that at least one more rate hike is on the way. Monetary tightening continues.
The U.S. president says the ceasefire with Iran is on life support. European stock markets are expected to open sharply lower on Tuesday.
Deutsche Telekom shares are down 1.5% following revelations about a possible merger with T-Mobile US. A deal that would create a global telecom giant.
UBS expects EUR/SEK to appreciate after disappointing Swedish inflation figures. A bullish stance on the euro-crown pair that deserves a closer look.
The CAC 40 gained ground on Tuesday morning on the back of easing geopolitical tensions. But LVMH disappointed with sales down 6%.
Paris, London and Frankfurt fell back at the start of the session. The failure of negotiations between Washington and Teheran has triggered a wave of risk aversion on the Old Continent.
European markets tumbled on Monday morning. Paris lost 0.94%, Frankfurt 0.96%, London 0.56%. Cause: tensions between Iran and the United States over a threatened port blockade.
The French government refuses to make a decision on fuel prices. The unions were calling for emergency measures, but only vague promises.