German stocks have outpaced European rivals since the coronavirus-driven market selloff bottomed out in March, reflecting the advantages of strong balance sheets and exports to China. The German DAX is down 3% for 2020, lagging behind the S&P 500’s 3% gain but performing far better than its European peers. Investors said German shares were piggybacking on China’s economic recovery. “There are some sectors within the DAX which have massive exposure to that trend.”Traders said companies like German car makers have benefited from strong balance sheets and a reputation for robust management. Beneficiaries include BMW AG , up 61% since the Federal Reserve spurred the global market bounceback on March 23 by announcing a series of lending programs, and Daimler AG , up 101%.

Source: Wall Street Journal September 15, 2020 08:51 UTC