The DAX ended Friday with a 1.29% drop to 24,671, sending the index below all three of its major moving averages in a broad-based risk-off session that saw 28 of its 40 members close in the red. The decline was driven by a dual blow from US tech weakness and a heavy selloff in cyclical names, while defensive stocks and SAP provided only a partial buffer.
Zalando was the biggest loser, tumbling 6.32% to €24.92 as the BaFin continues to review the company’s fiscal 2024 accounts. Siemens Energy sank 5.84% to €153.92, becoming the most traded DAX stock with €534 million in turnover. Infineon dropped 4.52%, tracking the weakness in US semiconductor shares. The auto sector was also under pressure amid reports of intensified cost-cutting measures: Volkswagen preference shares fell 3.91%, Mercedes-Benz 2.91%, and BMW 2.83%.
On the upside, SAP added 2.16% to €135.14, providing the strongest single-stock support. Without the software giant’s gain, the index would have fallen further. Other defensives such as Beiersdorf and Adidas each rose about 2.14%, while Henkel, Allianz, Deutsche Telekom, and E.ON posted modest gains — a classic rotation into stability away from growth-oriented names.
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The technical picture deteriorated sharply. The DAX closed below its 50-day moving average at 24,844, its 100-day at 24,909, and its 200-day at 24,826. The VDAX-NEW volatility index climbed 3.50% to 17.96, reflecting increased hedging activity. The RSI(14) settled at 48, indicating weak but not oversold momentum, while the MACD remained negative. Trading volume of 61.5 million shares came in slightly below the five-day average, suggesting the selloff was orderly rather than panic-driven.
Macro conditions added to the headwinds. A firmer euro near $1.1399 weighed on export-heavy DAX constituents, while gold surged 1.55% to $4,090, underscoring risk aversion. Brent crude slipped 1.23% to $73.87, aligning with the defensive tone. On a year-to-date basis, the DAX still clings to a marginal 0.54% gain, but it now sits 3.28% below its 52-week high of 25,508.
Looking ahead, the key technical zone for the new week lies between 24,571 and 24,910. If the Friday low at 24,548 holds, a recovery toward 24,672 to 24,736 is possible. A break below that level would expose the next supports at 24,533 and 24,470. Macro data will dictate the next move: German labor and inflation figures on Tuesday, eurozone PMI and the ISM index on Wednesday, and the US jobs report on Thursday. These releases will shape expectations for the ECB’s rate path and could determine whether the defensive rotation continues or cyclical pressure resumes.
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