European indices are among the most widely traded instruments outside the US, offering exposure to a different economic cycle, a different central bank (the ECB), and a different currency backdrop. The DAX (Germany), FTSE 100 (UK), CAC 40 (France), and Euro Stoxx 50 (eurozone blue chips) are the four most commonly traded.
The DAX
The DAX tracks the 40 largest companies on the Frankfurt exchange (often labeled GER40 on CFD platforms). It's heavily industrial and export-oriented — automakers, chemical firms, and industrial conglomerates make up a large share, so it's sensitive to EUR strength (a stronger euro hurts exporters' competitiveness) and to global trade conditions, especially demand from China.
| Index | Country | Constituents | Character |
|---|---|---|---|
| DAX (GER40) | Germany | 40 | Industrial/export-heavy, EUR sensitive |
| FTSE 100 (UK100) | UK | 100 | Commodity/financial heavy, less tech |
| CAC 40 (FRA40) | France | 40 | Luxury goods, banking, industrials |
| Euro Stoxx 50 | Eurozone | 50 | Blue-chip basket across the eurozone |
Currency & Export Sensitivity
A large share of DAX and CAC 40 company revenue comes from outside Europe. This means these indices can rally even when domestic German or French data is weak, simply because a weaker euro makes their exports cheaper abroad — and vice versa when the euro strengthens.
Sessions
European cash indices trade roughly 07:00-15:30 UTC for their local exchange hours, but CFD versions extend well beyond that — commonly around 07:00-21:00 UTC or close to 23 hours depending on the broker's futures-linked pricing. Liquidity is best during the European morning and the London-New York overlap.
European Central Bank rate decisions and press conferences are the key scheduled catalysts for eurozone indices, similar to how the Fed drives US indices. German inflation and PMI data are also closely watched for the DAX specifically.
DAX vs FTSE 100
The FTSE 100 leans more toward commodities, mining, energy, and financials, and less toward technology than the DAX. This makes it behave differently in different macro regimes: the FTSE often does relatively well when commodity prices rise, while the DAX is more tied to industrial and manufacturing cycles.
- ▸DAX: industrial/export-heavy, EUR and China-demand sensitive.
- ▸FTSE 100: commodities/financials heavy, GBP and oil/mining sensitive.
- ▸CAC 40: luxury goods exposure gives it unique sensitivity to Chinese consumer demand.