why is the dax so important 
the dax is an important index because it measures the performance of the largest 40 publicly traded companies in germany as such it is considered a bellwether or barometer of the german economy the bottom linethe dax is a stock market index it is composed of the 40 largest companies in germany that trade on the frankfurt stock exchange like most stock market indices it is considered a bellwether of the german economy which is why analysts and investors look closely at how it performs if the index rises it typically indicates the economy is doing well but when it drops it may mean that investors should prepare for a rough economic patch 