Can the Dax keep soaring?

The Dax, which tracks the performance of Germany's 30 largest companies, keeps hitting all-time highs. Analysts are calling this a turning point after six weak years, say Susanne Schier and Anke Rezmer in Handelsblatt, as stronger growth in the eurozone and less political uncertainty finally becomes apparent. Yet "not all is as rosy as it seems in Europe".

One key headwind is the possibility the European Central Bank will start to reverse its ultra-loose monetary policies. What's more, a survey of German executives suggests that, for the first time in two years, they are no longer buying German stocks. Other surveys of individual investors and private-equity investors are also turning less bullish.

On a forecast price-to-earnings ratio of under 14, the Dax doesn't look pricey. But note that the index is highly cyclical, and four economically sensitive stocks Bayer, BASF, Daimler and Siemens account for more than a third of the gains since December, says Jonathan Eley in the Financial Times. The rally looks vulnerable to changes in sentiment. "Investors would do well to exercise caution."

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