Morning update from Germany: The DAX index is posting its strongest performance since 2019, which is pretty remarkable given the economic headwinds across Europe. Here's what's driving it—most DAX-listed companies actually don't rely on domestic revenue. Think about it: only ~20% of their earnings come from the German market itself. The real money? About a quarter flows in from the rest of Europe, another quarter from Asia-Pacific markets, and the remainder from Americas and emerging economies. So when the euro weakens and global trade flows shift, these multinational giants capture outsized gains. It's a textbook example of how currency dynamics and international diversification can decouple local economic struggles from stock market performance. Pretty insightful for anyone tracking macro trends and portfolio positioning right now.
Morning update from Germany: The DAX index is posting its strongest performance since 2019, which is pretty remarkable given the economic headwinds across Europe. Here's what's driving it—most DAX-listed companies actually don't rely on domestic revenue. Think about it: only ~20% of their earnings come from the German market itself. The real money? About a quarter flows in from the rest of Europe, another quarter from Asia-Pacific markets, and the remainder from Americas and emerging economies. So when the euro weakens and global trade flows shift, these multinational giants capture outsized gains. It's a textbook example of how currency dynamics and international diversification can decouple local economic struggles from stock market performance. Pretty insightful for anyone tracking macro trends and portfolio positioning right now.