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The cars and chemicals in the DAX

Germany, the economic powerhouse of Europe, has many high-quality industrial and engineering firms

At the end of September, the DAX was trading at roughly 14 times forward earnings with a dividend yield of 3 per cent. Like other European indices, the German blue-chip index is trading above its 10-year historical average in terms of earnings ratios.

A FEW months ago, right after the Brits voted to leave the European Union, this column introduced the UK's FTSE 100 Index. In Europe, the British stock market is the biggest and contains a number of global companies that will be easily recognisable anywhere in the world.

However, it is...

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