Deutscher Aktienindex

Dax

Deutscher Aktienindex (DAX) = stock market index about the 30 largest german companies.

Exist since 1988.

Equivalent to the FT 30 (UK) and the Dow Jones Industrial Average (USA).

Dax has been decreasing lately:

• VW was one of the most important DAX lately so the index is decreasing since the VW scandal.
• The future is more uncertain lately because of the refugees → another negative impact on the DAX.
• The euro crisis causes uncertainty as well.
• Wars in Syria, Ukraine
• Economic development: the biggest trading partner for Germany is China (outside of UE and USA). Chinese economy is slowing down → it slows down german business as well (they don’t buy as much german products (chemicals and machines) than before).

The Dax had an exponential development since 1990 approximatively.

The Dax 30 includes for example Adidas, Allianz (insurance), Bayer (pharmaceutical), Siemens, VW, T Mobile, Lufthansa, Deutsche Bank, BMW, SAP, … The companies change over time and are replaced by others.

Germany trades goods mainly in motor vehicles, machinery and chemicals.

Big companies are not necessarily in the Dax (for example if they are a foundation or a big family business). Ex: Bosch is not in the Dax, Aldi group neither.

Third of the Dax are owned by German investors, third by European investors and less than a third by American investors.

The majority of the Dax are based in west Germany.

research and development → design and engineering → sourcing → manufacturing → marketing → sales and distribution → service and support

Germany chooses to keep its factories in the country. Advantages (access to finance, intra-EU trade, technology and innovation, skills/technical development and training, dual system of vocational education, lower barriers to international trade, country of origin (made in Germany).

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