Everything on Capital Flows

The DAX 40’s recent outperformance is driven by foreign institutional inflows rather than domestic German economic strength, creating a decoupling from local industrial performance.

Impact: DAX performance remains sensitive to global risk sentiment and US monetary policy, rather than German fiscal or industrial data.

— from Market Strategy: Fed Nomination, AI Valuations, and DAX Rotation · Deffner und Zschäpitz – Der Wirtschafts-Talk von WELT· Feb 03, 2026