Peter Garnry, head of equity strategy at Saxo Bank, says it is good time to trade on the German stock market index.

He says German exports to the European Union have been strong at +2.7% year-on-year and the Dax is among the cheapest among the developed equity markets with 12.4x forward earnings.

Garnry also says that the earnings season in the UK and Europe has been better than expected and there is a change in sentiment that could return the Dax to 10,500.