NEW YORK (TheStreet) -- The continuing correction in Germany's blue-chip DAX stock index opens up opportunities for investors, one strategist said.

Deutsche Telekom (DTEGY) stands out as being attractive, because it's in the process of trying to strip out T-Mobile US (TMUS), said Alastair McCaig, a markets analyst with London-based IG Markets. "There's also lots of speculation that they are eyeing up an acquisition of British telecommunications company BT (BT)."

McCaig said Germany's telecommunications space is ripe for mergers and acquisitions, "as the amalgamation between satellite, broadband, mobile and content continues to look very attractive, and the lines between companies that straddle those sectors becomes increasingly blurred."

Germany's DAX has slumped 11% since its April 10 peak of 12374.73, according to data compiled by Bloomberg. A decline of that magnitude screams "correction," which is loosely defined as a drop of at least 10% in a major stock index.

"When you consider that [Europe's] quantitative-easing policy is still in place and unlikely to end in September 2016, which is what's penciled in, there's always going to be some supportive buying creeping in," McCaig added.

He said the correction in German stocks will entice some buyers who have been sitting on the sidelines to buy German stocks.

Meanwhile, HSBC (HSBC), the largest bank in Europe, said it will cut some 50,000 jobs in an effort to reduce costs by $5 billion throughout the next two years, per a statement to the Hong Kong Stock Exchange.

"When it comes to job cuts, the markets always take that as a pretty positive sign," McCaig said. "This is a template that has been in place for some time, as about 87,000 jobs have been cut at the firm since 2011 when Stuart Gulliver started as CEO."

The bank had 257,600 full-time employees, according to its annual report in December 2014. The company's American depositary receipts are 0.2% lower since the start of the year.

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