Hope of German Industrial Recovery Fuels a Broader Stock Rally

As German stocks outpaced broader European indexes in recent years, a big part of the country’s market was left behind. That’s finally changing.

Indexes tracking shares of the country’s small and mid-sized companies are outperforming the large-cap DAX as well as the pan-European Stoxx 600 in 2026, extending a trend that started to take shape last year.