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Benedict Lowy, a strategist at BNP Paribas, believes that compared to other European benchmark stock indices plagued by political uncertainty, the German stock market has better investment opportunities. Lowy, the agency's stock derivatives strategist, said in an interview that the German DAX Index has a high weight of industrial stocks. Currently, the manufacturing purchasing managers' index is picking up, and analysts are more optimistic about the profit expectations of the index's constituent stocks. “The market will continue to be disrupted by various political events in the coming months. In the European market, DAX is a good choice.” Investors' holdings in the index are still low, capital inflows are weak, and net futures positions are far below the 2025 high, she said. At the time of Lovey's remarks, Spanish Prime Minister Sanchez announced an early general election due to two housing emergency bills being vetoed in parliament last week. The European stock market, which already needed to deal with French political risks and pressure on energy prices, added a layer of uncertainty.
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Benedict Lowy, a strategist at BNP Paribas, believes that compared to other European benchmark stock indices plagued by political uncertainty, the German stock market has better investment opportunities. Lowy, the agency's stock derivatives strategist, said in an interview that the German DAX Index has a high weight of industrial stocks. Currently, the manufacturing purchasing managers' index is picking up, and analysts are more optimistic about the profit expectations of the index's constituent stocks. “The market will continue to be disrupted by various political events in the coming months. In the European market, DAX is a good choice.” Investors' holdings in the index are still low, capital inflows are weak, and net futures positions are far below the 2025 high, she said. At the time of Lovey's remarks, Spanish Prime Minister Sanchez announced an early general election due to two housing emergency bills being vetoed in parliament last week. The European stock market, which already needed to deal with French political risks and pressure on energy prices, added a layer of uncertainty.
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