Germany 30 – Trade the Germany 30
Trade in one of the most liquid and fast-moving stock market indices with the Germany 30 index. Founded in 1988, the Germany 30 has risen in prominence and has become one of the world’s most actively-traded indices – offering compelling opportunities for CFD investors and traders looking to maximise their returns.
What is the Germany 30 index?
The Germany 30 is a stock market index comprising 30 of the largest and most liquid blue chip companies listed on the Frankfurt Stock Exchange (FSE). When you trade this capitalisation-weighted index, you’ll be trading in the fortunes of some of the most well-known global brands including BMW, Deutsche Bank, Adidas and Siemens.
The 30 companies listed on the DE30 represent 75% of the total market cap of the Frankfurt Stock Exchange. As such, it can often be used as a barometer of the wider German economy – one of the largest in the EU. The Germany 30 index also appeals to international investors as the listed companies generate significant revenue from sales and operations outside Germany.
How does the Germany 30 work?
One of the features that attracts CFD traders to the Germany 30 is its fast-moving and volatile nature. Germany 30 prices are taken from the Xetra trading venue, which calculates the index every second and presents numerous opportunities for traders to long or short the market.
The composition of the Germany 30 can change quarterly, with companies added or removed based on their current market cap and order book size.
What drives the Germany 30 price?
There are several factors that can affect the Germany 30 price and that any prospective traders should be aware of. These factors include:
− The performance of the German (and eurozone) economies
− The performance of other economies that DE30 companies are exposed to e.g. USA
− German and European Union policy making
− The performance of the Euro exchange rate
− Company weightings within the Germany 30 index
Germany 30 chart
For the latest up-to-the-minute movements, OANDA’s Germany 30 chart allows CFD traders and investors to predict trends and movements in the index. Past performance should not be relied on to provide a guarantee or prediction of future performance, but it can assist traders with spotting potential spreads and opportunities for maximising return on investment.
Q1 2020 Outlook
Positive manufacturing PMIs in the Eurozone saw the Germany 30, or DAX 30, gain 0.37% on January 2, rising to 13,300. But, fears over the spread of the Chinese Coronavirus have rattled European investors, causing the DAX 30 to gain just 0.05% to trade at 13,559.60 on January 23. Market jitters could continue if the World Health Organisation labels this as a global health emergency.
The outlook for Germany 30 for Q1 2020 remains neutral. Christine Lagarde is now at the helm of the ECB and is strongly urging countries to reform their fiscal policies. If Germany decides to oblige and ease its fiscal policy, the DAX 30 might be looking at a huge shift in its fundamental landscape.
Economic Data to Look Out For: February and March 2020 Outlook
February 3, 2020: Markit Manufacturing PMI Eurozone January 2020
IHS Markit Eurozone Manufacturing PMI stood at a revised 46.3 in December 2019, from a preliminary 45.9. However, factory activity is still under contraction and new orders haven’t improved. For January, expectations are subdued at 46.9.
February 5, 2020: Markit Services PMI Eurozone January 2020/ Markit Germany Services PMI January 2020
The PMI for the Euro Area stood at a four-month high of 52.8 in December 2019. It is expected at 52.9 for January 2020. Germany Services PMI was revised higher to 52.9 for December 2019. It is expected at 52.30 by the end of Q1 2020.
February 7, 2020: German Balance of Trade December 2019
March 9, 2020: Balance of Trade January 2020
Trade surplus in Germany narrowed to €18.3 billion in November 2019, on a year-on-year basis, as exports fell 2.9%. It might further narrow to €14 billion in December 2019, due to ripple effects of a slowdown in China and the trade war with the US. By January 2020, the trade surplus is expected at €13.4 billion.
February 14, 2020: Eurozone GDP Growth Rate Estimate QoQ for Q4 2019
The Eurozone registered 0.2% growth from the previous quarter in Q3 2019. GDP growth is expected to stay constant in Q4 as well.
February 18, 2020: Germany ZEW Economic Sentiment Index February 2020
March 16, 2020: Germany ZEW Economic Sentiment Index March 2020
The ZEW Indicator of Economic Sentiment for Germany rose 16 points to 26.7 in January 2020. This was well above market expectations of 15 and also the highest since July 2015. The markets expect it at 19 for February 2020 and 12 for March 2020.
February 25, 2020: Germany GDP Growth Rate YoY and QoQ Final for Q4 2019
Preliminary estimates show that Germany grew just 0.6% in 2019, its weakest growth since 2013. The QoQ estimated growth is low at 0.1% for the Q3 2019, compared to the 0.2% decline in the prior three months. The final figures could cause some movement for the DAX.
February 27, 2020: Business Confidence Eurozone February 2020
March 30, 2020: Business Confidence Eurozone March 2020
The Business Climate Indicator fell 0.04 points to -0.25 for the Eurozone in January 2020, the lowest level in six years. A smooth Brexit could lead to some improvement, with business confidence standing at -0.17 in February and -0.12 in March 2020.
March 12, 2020: ECB Interest Rate Decision
The European Central Bank left the key interest rate unchanged at 0% in its January 2020 meeting. The marginal lending facility rate was also kept stable at 0.25%. The markets expect no change in March either.
March 18, 2020: US Federal Reserve Interest Rate Decision
The US Fed maintained the target range for its federal funds rate at 1.5%-1.75% on December 11, 2019. The rate is expected to remain constant at 1.75% for the time being.
Q1 2020 Predictions: Political Events That Could Impact Germany 30
Germany’s regional elections are scheduled for March 2020, which could cause some fluctuations in the DAX. Apart from this, negotiations in the Brexit aftermath may lead to interesting developments. Conflicts in the Middle East, particularly the US-Iran tussle, could lead to crude oil price fluctuations, impacting several key companies on the index.
Q1 2020 Predictions: Other Factors That Could Impact the Germany 30
The viral outbreak from China spreading across the world could rattle investors.