It sounds odd for German companies to be in a “euphoric” mood while the euro has been on a tear higher, but there are solid factors behind that uplifted frame of mind, analysts say.
Concerns that a stronger euro will hurt big exporters in Europe’s largest economy have been reflected in the DAX 30 DAX, -0.90% The German stock benchmark slumped 1.7% last month, helping to drive down its year-to-date gain to about 6%.
However, “there are fundamental reasons why German industry is not too worried about the strengthening of the euro,” said Carsten Brzeski, chief economist at ING.
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Craig Erlam
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