<p><strong>DAX</strong> is Germany's primary <a href="/NewSite/encyclopedia/stock-index/" class="ency-link">stock index</a>, tracking the performance of the 40 largest companies listed on the Frankfurt Stock Exchange by market capitalization.</p>
<p>The DAX matters as it provides a broad-based measure of the German economy's health and is a key indicator for investors interested in European markets. For instance, a rise in the DAX can signal growing confidence in German companies, potentially influencing investment decisions.</p>