European markets, led by Germany and country-specific exchange traded funds, climbed Tuesday after some widely anticipated earnings beat expectations, reflecting ongoing growth in the Eurozone economy.
On Tuesday, the iShares MSCI Germany ETF (NYSEArca: EWG) increased 2.4%, Recon Capital DAX Germany ETF (NasdaqGM: DAX) gained 2.6% and First Trust Germany AlphaDEX Fund (NYSEArca: FGM) rose 2.1%.
Meanwhile, the broader Vanguard FTSE Europe ETF (NYSEArca: VGK), which includes a 13.3% tilt toward Germany, was 0.9% higher on Tuesday.
Germany stocks rallied with the benchmark DAX Index back in a bull market after rising 22% since its February low, Bloomberg reports.
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Boosting market sentiment, Munich Re surged 5.7% after the reinsurance company revealed quarterly net income that was over double analysts’ projections. Additionally, BMW AG and Daimler AG both added 2.8% after reporting higher auto sales in China over July.
[related_stories]EWG includes a 2.6% tilt toward Munich Re, 2.6% to BMW and 6.0% to Daimler. DAX includes 3.0% Munich Re, 7.4% Daimler and 2.9% BMW. FGM holds 4.6% BMW and 3.6% Daimler.
Many anticipated increased volatility and uncertainty in the post-Brexit aftermath. However, with improving corporate earnings, better-than-expected U.S. data and fresh stimulus measures, European markets are beginning to calm and shift toward more bullish attitudes.
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“No news from the economic side means investors have an eye on the company side,” Heinz-Gerd Sonnenschein, equity strategist at Deutsche Postbank AG, told Bloomberg. “The markets are stable. If you have an eye on the volatility markets, we’re at very low levels. We had Brexit, we had the banking problems coming out of Italy, but the markets are stable now.”
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iShares MSCI Germany ETF