DAX 40

DAX's 20-day volatility stands at 0.74% a day, making it about as volatile as most of the indices Kinzan tracks (their median is 0.75%).

At −0.2σ, the last 24 hours have been an entirely ordinary session for DAX.

It sits near the bottom of its 24-hour range of 25,362.96–25,590.52, measured on hourly closes.

The New York block (13:00–22:00 UTC) did most of the work — roughly 76% of the movement over the last 24 hours.

Over the last 60 sessions of daily returns, it has moved most closely with STOXX50 (+0.87, a very strong relationship), and most inversely to BRENT (−0.56).

Market read: The DAX is breaking down, sitting at its daily low after a weak New York session.

What it is

The DAX tracks forty major German companies traded on the Frankfurt Stock Exchange’s Xetra platform. It expanded from thirty members to forty in 2021, alongside new rules requiring profitability for admission. A feature that surprises newcomers: the headline DAX is a total-return index, meaning dividends are assumed to be reinvested, so its level is not directly comparable with price-only indices such as the FTSE 100 or the Dow Jones. Carmakers, industrial engineering, chemicals, insurance, software and defence feature prominently.

What drives it

Germany’s economy is built on exports of manufactured goods, so the DAX leans on the global industrial cycle more than on German household spending. Demand from China and the United States for cars, machinery and chemicals is a recurring theme, and trade tariffs have historically hit the index hard. Surveys such as the Ifo business climate index, ZEW investor sentiment and manufacturing PMIs are closely read. Energy costs matter a great deal for Germany’s heavy industry, as the 2022 gas crisis showed. The European Central Bank’s policy affects financing conditions and the euro, while the currency itself plays a role: a softer euro has tended to help exporters. Because many members earn most of their revenue abroad, the index is also sensitive to global risk appetite and US equity moves.

How it trades through the day

Xetra trading runs from 09:00 to 17:30 Central European time, placing the cash session across the London block (07:00–13:00 UTC) and the early New York block (13:00–22:00 UTC). DAX futures on Eurex trade from early morning Frankfurt time until late evening, so futures react to Wall Street’s afternoon. In the Asia block (22:00–07:00 UTC) activity is minimal, and overnight direction comes mostly from Asian markets and US index futures.

What it tends to move with

The DAX 40 tends to move with other European indices such as the FTSE 100, and with the S&P 500. Its export exposure has given it a historical sensitivity to Chinese demand, loosely linking it with the Hang Seng and copper. Moves in EUR/USD have at times mattered too, with a weaker euro tending to support German exporters.