The DAX has had a strong start to the year but could receive further support from a weaker euro over the coming days.
The index of 30 leading blue-chip stocks listed on the Frankfurt stock exchange has already risen by 4% since last Tuesday.
However, dollar strength against the euro could provide a further boost for eurozone equities.
While adopting on upbeat tone on the outlook for global equities in general, on Tuesday Credit Suisse said it was particularly optimistic about the prospects for eurozone stocks.
Commenting on the dollar´s strength over the past two trading sessions, Boris Schlossberg, managing director at BK Asset Management, said: “The sell-off in euro came despite strong economic data from the region including better than expected Trade data which printed at 22B vs. 20B eyed and an unemployment rate that hit a 9 year low of 8.7%.”
US 10-year Treasury yields have risen to 2.5% (prices move inversely to yields) as investors have continued to move their money out of the bond market and into equities.
“For now, the dollar bulls will try to run the 1.1900 barriers in euro and 1.3500 figure in cable, but with no US data on the docket, momentum may stall especially if US yields can’t hold the new breakout levels,” added Schlossberg.