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'DAX benefits from pro-active German Covid-19 approach’

The German DAX Index has recovered remarkably quickly from the corona slump. Moreover, it’s the best-performing equity market in Europe this year. Germany is benefiting from its pro-active corona approach and the pick-up in economic activity in China, its main export destination, says Christoph Ohme, senior portfolio manager for German equities at asset manager DWS. But German companies now have to live up to investors’ expectations.

It's the dollar, stupid!

Central banks and governments around the world are once again engaged in a ‘currency devaluation’ contest. The US dollar has been on a sharp downward trend in recent weeks. This has had a significant impact on financial and real assets.

The chart below, which we borrowed from Hong Kong investor Puru Saxena and goes back all the way to 1980, suggests the dollar indeed is on a long-term downtrend.

Finance industry excluded from Covid-19 benefits

Financial and insurance businesses in Luxembourg have been denied access to the Covid-19 partial unemployment aid. They are probably also ineligible for the new package to support the economic recovery.

When Luxembourg implemented partial unemployment on 18 March to support companies and their employees impacted by the COVID-19 crisis, around 320 claims from financial and insurance institutions for a total of €47.7 million were rejected by the authorities.