Steep drop observed in Dax's performance - looming sales slump may lead to more deterioration
DAX Starts Friday on a Cautious Note, According to Market Analyst
The Frankfurt stock exchange floor was slippery on Friday morning, as the DAX started trading with significant losses. Jochen Stanzl, chief market analyst at CMC Markets, suggested that even good news like Microsoft's results couldn't boost the overall market, indicating that the peak in prices might be near [1].
At 9:30 AM, the Dax was calculated at around 23,720 points, a 1.4% decrease from the previous day [5]. All Dax stocks opened in the red, with the Bayer share being the only exception, briefly climbing above the opening price [6].
Despite the initial downturn, analyst Jochen Stanzl maintains a cautiously optimistic outlook for the DAX. After a recent significant loss, he believes there is potential for a rebound, supported by easing US tariff fears, better-than-expected corporate earnings, and hopes for Federal Reserve interest rate cuts [2][3].
In his analysis, Stanzl highlights the resilience of the DAX index, which rose 0.37% on August 5, 2025, following a strong previous rally, and currently hovers around 23,846 points [2][3]. Key drivers underpinning this optimistic perspective include optimism about multiple Fed rate cuts potentially supporting equity valuations, corporate earnings surprises lifting several DAX-listed companies, and easing trade tensions between the US and EU [2][4].
However, Stanzl also notes that the 23,900 points are an increasingly fragile straw that investors are currently clinging to [7]. If the Dax consistently falls below this level, the risk of a real selling wave increases [8]. He also states that if the Wall Street runs out of steam, it could hit the Dax hard [9].
The euro showed some strength against the US dollar in the morning, with one euro worth 1.1426 US dollars, while one dollar was worth 0.8752 euros [10]. Stanzl predicts a new era for global trade next week with Trump's tariffs [11].
In conclusion, while short-term fluctuations persist, the dynamics underpinning the DAX outlook are balanced, with improving fundamentals and sentiment counteracting downside risks [2][4]. As Stanzl suggests, today will show whether there is still buying interest in the Dax at 23,900 points [4], and whether the trend reversal in the index is becoming increasingly likely [7].
[1] Stanzl suggests that even good news can't attract investors, implying that the current high valuations, especially for US stocks, are increasingly difficult to justify. [2] The DAX index has shown resilience, rising 0.37% on August 5, 2025, following a strong previous rally, and currently hovering around 23,846 points. [3] Market sentiment is buoyed by positive factors such as strong auto sector data, semiconductor market pickup signaled by Infineon Technologies, and improved trade outlook between the US and EU. [4] Jochen Stanzl emphasizes the interplay of fundamental catalysts and technical levels, with key drivers shaping the outlook being optimism about multiple Fed rate cuts, corporate earnings surprises, easing trade tensions, and sector divergence. [5] At 9:30 AM, the Dax was calculated at around 23,720 points, a 1.4% decrease from the previous day. [6] The Bayer share was the only one to briefly climb above the opening price. [7] Stanzl notes that the 23,900 points are an increasingly fragile straw that investors are currently clinging to. [8] If the Dax consistently falls below 23,900 points, the risk of a real selling wave increases. [9] Stanzl states that if the Wall Street runs out of steam, it could hit the Dax hard. [10] On the foreign exchange market, the European common currency (euro) gained slightly against the US dollar in the morning. [11] Jochen Stanzl predicts a new era for global trade next week with Trump's tariffs.
In the context of Jochen Stanzl's analysis, the ongoing losses in the DAX industry may beAttributes of short-term volatility, but he remains cautiously optimistic about the index's long-term performance, citing easing US tariff fears, better-than-expected corporate earnings, and hopes for Federal Reserve interest rate cuts as key boosters for the business landscape. Despite the fragile profit level of 23,900 points, a rebound in the DAX finance sector is possible if there is continued buying interest at this level.
