Germany’s DAX index is down about 1% in local currency terms, but roughly flat in dollar terms due to appreciation of the euro. Like the Japanese market, Germany’s stock market doesn’t like currency appreciation.

Global investors look at the market in dollar terms and when the euro appreciates German stocks become more expensive. For American or Asian investors buying German stocks with dollars, though, DAX offers excellent value (a forward P/E of 12.69 vs. 16.5 for the S&P 500).