German equities are once again in the spotlight. With the DAX and MDAX up around 20% year-to-date, investor sentiment is buoyed by easing trade tensions and a robust fiscal agenda. Germany’s constitutional debt brake reform has unlocked a wave of public investment, while the “Made for Germany” initiative is driving EUR630bn in private sector commitments by 2028.

In this PERSPECTIVES Viewpoint Equity: DAX & MDAX – German equities in focus, we examine how structural shifts in these indices, attractive valuations, and projected double-digit earnings growth position German stocks for continued outperformance. We also explore the implications of sectoral rotation, international capital flows and Germany’s evolving industrial strategy for equity investors.

 

Key takeaways:

 

  • The DAX and MDAX have performed strongly this year, outperforming many other European indices. The positive trend may continue due to favourable political and economic conditions.
  • The German economy is benefitting from government investments in infrastructure, defence, and climate protection, as well as from tax relief measures. These initiatives aim to boost growth and mitigate challenges from trade conflicts. 
  • Analysts expect German companies to deliver above-average earnings growth in the coming years. The MDAX remains attractively valued, while structural changes in the DAX justify higher valuations

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The PERSPECTIVES Viewpoint is currently available and client-ready for the following regions: Germany, Americas, Europe, Middle East, Africa and Asia Pacific

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