Info of GER40
GER40, also known as DAX 40 or DAX, is a stock market index consisiting of 40 German companies trading on the Frankfurt Stock Exchange. It accounts for roughly 80% of the total market capitalization of German companies. The top Germany 40 risers include QIAGEN NV, Siemens Energy, RWE AG, Siemens AG, E.ON SE, etc. Companies which want to be included on the index must have positive earnings for at least 2 years and provide quarterly as well as annual report.
The GER40’s components are weighted by free-float market capitalization, meaning only publicly tradable shares are included in the calculation. The DAX is not only the bencmark of Germany economy but also the European economic health. The euro’s exchange rate is a major influence on the GER40 and typically shows a negative correlation with the index. This relationship stems from trade dynamics: a weaker euro raises the cost of German exports, while a stronger euro reduces it.
In addition to broader economic and political factors—such as interest rate decisions and elections—the GER40 is also more vulnerable to global shocks because it contains fewer technology stocks. For example, during the COVID-19 pandemic, the GER40 experienced a steeper decline than U.S. indices, which were supported by strong tech-sector performance.