The Germany 40, or the DAX 40, is an index that reflects the performance of 40 major blue-chip German entities listed on the Frankfurt Stock Exchange (Deutsche Börse). Created in 1988, the DAX 40 is a free-floating index covering the German companies with the largest market capitalisation and book value. It represents approximately 80% of the Deutsche Börse's market cap. Basically, the DAX 40 is a benchmark, tracking the direction of the stock market in Germany. The prices used to calculate the index are provided by the trading platform Xetra.
While the Magnificent Seven have dominated market momentum in recent months, it’s not true that they are the sole drivers of the recent rally in equity markets.