What is GER40?
GER40, commonly known as the DAX 40, is Germany’s premier stock market index that tracks the performance of the 40 largest and most liquid German blue-chip companies listed primarily on the Frankfurt Stock Exchange. It reflects the overall health of the German economy and is a key benchmark for European equity markets.
The DAX 40 is a market-capitalization-weighted index using a free-float methodology, meaning it only considers shares available for public trading.
It is a total return index, which means dividends paid by constituent companies are reinvested in the index calculation.
The index replaced the previous DAX 30 in September 2021 by expanding the number of constituents from 30 to 40 companies.
Does Bond Yield Affect GER40?
Yes, bond yields do affect the GER40 price movements, as they influence the cost of capital, investor risk appetite, and economic outlook:
Rising German government bond yields typically increase borrowing costs for companies, which can weigh on corporate profits and stock valuations, potentially pressuring the DAX 40 lower.
Higher yields may also make fixed income more attractive relative to equities, causing capital to flow out of stocks into bonds.
Conversely, falling bond yields lower borrowing costs and often signal economic uncertainty, which can support or sometimes depress stocks depending on the context.
The DAX 40’s sensitivity to bond yields is also influenced by broader European Central Bank (ECB) monetary policy and global risk sentiment.
Additionally, the US Treasury yields and US Dollar strength indirectly impact the GER40 by affecting global capital flows and export competitiveness of German multinational companies.
Companies That Make Up GER40 (Selected Major Constituents)
The DAX 40 consists of 39 companies (due to share classes) across various sectors. Here are some key members with their sectors and approximate market caps:
Company Ticker Sector Market Cap (Approx.)
Adidas AG ADS Personal Goods €36.5 billion
Airbus SE AIR Aerospace & Defence €122.8 billion
Allianz SE ALV Life Insurance €141.1 billion
BASF SE BAS Chemicals €40.2 billion
Bayer AG BAYN Pharmaceuticals & Biotechnology €22.6 billion
BMW AG BMW Automobiles & Parts €44.7 billion
Deutsche Bank AG DBK Banks €45.0 billion
Deutsche Telekom AG DTE Telecommunications €157.0 billion
Infineon Technologies AG IFX Technology Hardware & Equipment €37.8 billion
Mercedes-Benz Group AG MBG Automobiles & Parts €50.8 billion
Siemens AG SIE Industrial Conglomerate (Included in DAX)
SAP SE SAP Software & IT Services (Included in DAX)
Volkswagen AG VOW3 Automobiles & Parts (Included in DAX)
Deutsche Post AG DHL Commercial Transportation €45.4 billion
Munich Re (Muenchener Rueck) MUV2 Reinsurance €80.5 billion
(There are 39 stocks tracked due to share classes; full list includes companies from chemicals, healthcare, insurance, technology, automotive, and industrial sectors.)
Summary
What is GER40? Germany’s main blue-chip index tracking 40 largest companies on Frankfurt Stock Exchange
Bond Yield Impact Rising yields can pressure stocks via higher borrowing costs; falling yields can support stocks depending on context
Key Companies Adidas, Airbus, Allianz, BASF, Bayer, BMW, Deutsche Bank, Deutsche Telekom, Infineon, Mercedes-Benz, Siemens, SAP, Volkswagen, Munich Re, Deutsche Post, etc.
The GER40 is heavily influenced by Germany’s economic conditions, ECB policy, global trade dynamics, and bond market movements. Rising bond yields generally create headwinds for the index, while falling yields and accommodative monetary policy tend to support it.
GER40, commonly known as the DAX 40, is Germany’s premier stock market index that tracks the performance of the 40 largest and most liquid German blue-chip companies listed primarily on the Frankfurt Stock Exchange. It reflects the overall health of the German economy and is a key benchmark for European equity markets.
The DAX 40 is a market-capitalization-weighted index using a free-float methodology, meaning it only considers shares available for public trading.
It is a total return index, which means dividends paid by constituent companies are reinvested in the index calculation.
The index replaced the previous DAX 30 in September 2021 by expanding the number of constituents from 30 to 40 companies.
Does Bond Yield Affect GER40?
Yes, bond yields do affect the GER40 price movements, as they influence the cost of capital, investor risk appetite, and economic outlook:
Rising German government bond yields typically increase borrowing costs for companies, which can weigh on corporate profits and stock valuations, potentially pressuring the DAX 40 lower.
Higher yields may also make fixed income more attractive relative to equities, causing capital to flow out of stocks into bonds.
Conversely, falling bond yields lower borrowing costs and often signal economic uncertainty, which can support or sometimes depress stocks depending on the context.
The DAX 40’s sensitivity to bond yields is also influenced by broader European Central Bank (ECB) monetary policy and global risk sentiment.
Additionally, the US Treasury yields and US Dollar strength indirectly impact the GER40 by affecting global capital flows and export competitiveness of German multinational companies.
Companies That Make Up GER40 (Selected Major Constituents)
The DAX 40 consists of 39 companies (due to share classes) across various sectors. Here are some key members with their sectors and approximate market caps:
Company Ticker Sector Market Cap (Approx.)
Adidas AG ADS Personal Goods €36.5 billion
Airbus SE AIR Aerospace & Defence €122.8 billion
Allianz SE ALV Life Insurance €141.1 billion
BASF SE BAS Chemicals €40.2 billion
Bayer AG BAYN Pharmaceuticals & Biotechnology €22.6 billion
BMW AG BMW Automobiles & Parts €44.7 billion
Deutsche Bank AG DBK Banks €45.0 billion
Deutsche Telekom AG DTE Telecommunications €157.0 billion
Infineon Technologies AG IFX Technology Hardware & Equipment €37.8 billion
Mercedes-Benz Group AG MBG Automobiles & Parts €50.8 billion
Siemens AG SIE Industrial Conglomerate (Included in DAX)
SAP SE SAP Software & IT Services (Included in DAX)
Volkswagen AG VOW3 Automobiles & Parts (Included in DAX)
Deutsche Post AG DHL Commercial Transportation €45.4 billion
Munich Re (Muenchener Rueck) MUV2 Reinsurance €80.5 billion
(There are 39 stocks tracked due to share classes; full list includes companies from chemicals, healthcare, insurance, technology, automotive, and industrial sectors.)
Summary
What is GER40? Germany’s main blue-chip index tracking 40 largest companies on Frankfurt Stock Exchange
Bond Yield Impact Rising yields can pressure stocks via higher borrowing costs; falling yields can support stocks depending on context
Key Companies Adidas, Airbus, Allianz, BASF, Bayer, BMW, Deutsche Bank, Deutsche Telekom, Infineon, Mercedes-Benz, Siemens, SAP, Volkswagen, Munich Re, Deutsche Post, etc.
The GER40 is heavily influenced by Germany’s economic conditions, ECB policy, global trade dynamics, and bond market movements. Rising bond yields generally create headwinds for the index, while falling yields and accommodative monetary policy tend to support it.
Disclaimer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.