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Germany's DAX Index Rises, Close to Record High

The German flag flying above the Reichstag building in Berlin, Germany.
Photo by Maheshkumar Painam on Unsplash
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Germany's main stock market index, the DAX, closed higher on the day, rising by 0.51%.

The index came near its record high, its best level ever, during the trading session.

Bank stocks and defence company stocks led the gains, helping push the DAX upward.

Later in the session, the DAX slipped slightly, falling 0.12% to reach 26,299.74 points.

Even with this small drop, the index still had a strong day overall.

The DAX is made up of 40 of Germany's biggest and most important companies.

When the index rises, it often shows investor confidence in the German economy.

Bank shares often rise when investors feel positive about future business growth.

Defence company shares have been performing well recently amid global security concerns.

Analysts say the DAX has been getting close to record levels several times this year.

This shows strong overall performance in the German stock market.

The report came from Investing.com, a financial news website that tracks stock markets around the world.

Vocabulary10 words

index
a number that shows how a group of companies is doing
record high
the highest level ever reached
bank
a business that manages money for people
defence
related to protecting a country, like the military
investor
a person or company that puts money into shares
economy
the way money and business work in a country
stocks
another word for shares in a company
session
one full day of trading
confidence
a feeling of trust that things will go well
analysts
people who study markets and give opinions

Quiz

1. By how much did the DAX rise at the close of trade?
2. Which sectors led the gains in the DAX?
3. What level did the DAX reach after slipping 0.12%?

Fill-in-the-blank listening

Play the audio again and fill in the missing words as you listen.

Germany's main stock market index, the _____, closed higher on the day, rising by 0.51%.

The index came near its record _____ during the trading session.

_____ stocks and defence company stocks led the gains.

Later in the session, the DAX _____ slightly, falling 0.12% to reach 26,299.74 points.

Even with this small drop, the index still had a _____ day overall.

The DAX is made up of 40 of Germany's biggest and most important _____.

When the index rises, it often shows investor _____ in the German economy.

Bank shares often rise when investors feel _____ about future business growth.

Defence company shares have been performing well amid global _____ concerns.

Analysts say the DAX has been getting close to _____ levels several times this year.

Discussion questions

  1. Why might bank and defence company shares rise at the same time?
  2. What does it mean when a stock index is close to a 'record high'?
  3. How can stock market performance reflect a country's economy?
  4. Would you want to invest in a company whose shares are rising? Why or why not?

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