Baring Asset Management believes that economic and corporate fundamentals in Germany will support its stock market in the coming months, despite the fact that the country is at the heart of the struggling eurozone.

Along with the rest of Europe, equities in Germany have been under pressure since March. But thanks to strong results from exporting companies and the health of both corporates and households in the country, UK-based Barings believes they can rebound.

The firm highlights that stocks in Germany – Europe’s largest economy - trade at the same valuation level as its continental peers, where growth prospects of earnings are much lower. Thus the investment house thinks that now is an attractive entry point for investors. If German companies continue to deliver strong earnings results as predicted in the medium to long term, the firm believes the fundamentals will reassert themselves to the benefit of investors.

Germany’s exports increased by 3.9 per cent in May compared with last year and after a 1.7 per cent drop in April, Baring said, quoting official figures. On the back of that, Barings favours small and medium-sized exporting companies. The asset manager has moved away from the strategy of favouring the largest companies.

Interest rate cuts in China, both in June and July, and the potential that the US could take more measures to stimulate its economy will help consumers and in that way benefit exporting companies in Germany, Barings says.

In other recent news about the German economic powerhouse, Wealth-X said earlier this week the number of ultra high net worth individuals in Germany now stands at 16,156 - 231 more than last year - with a combined $2.16 trillion.