Steep sales drop for Dax – concerns escalate over additional slide
DAX Slips as Market Nervousness Persists, According to Analyst
The DAX benchmark index experienced a 1.4 percent decrease on Friday, with the index being calculated at around 23,720 points, according to early morning trading figures. This dip follows a weak start to trading, as all Dax stocks opened in the red, indicating a general downtrend.
Jochen Stanzl, Chief Market Analyst at CMC Markets, forecasts a cautious and slightly negative outlook for the DAX in the short term. He expects the index to fall below 24,000 points around early August 2025 due to mixed German corporate earnings and US monetary policy signals, particularly a strong US labor market report which may delay interest rate cuts.
Stanzl suggests that the peak in prices could be near, as even good news is not pushing the market up. He also notes that the behavior of investors might have changed, and today's trading will show whether there is still buying interest at 23,900 points or if there is selling restraint.
Another factor to consider is the upcoming trend reversal in the Dax, potentially triggered by a new era for global trade, beginning next week with Trump's tariffs.
In the currency markets, the euro gained slightly against the US dollar, with one euro worth 1.1426 US dollars and one dollar worth 0.8752 euros.
Bayer stock was the only Dax stock to briefly rise above the opening price. However, if the Wall Street runs out of steam, it could hit the Dax hard, according to Stanzl.
Overall, the market is showing signs of nervousness, and the immediate outlook for the DAX in early August 2025 is a slight downturn below 24,000 driven by macroeconomic factors, before possible stabilization later in the year. Longer-term forecasts suggest some stability or mild growth afterward, with monthly averages around 23,700 to 24,300 points through late 2025, and some forecasts expecting the index to reach around 25,000 by the end of 2025 to mid-2027.
The industry analyst Jochen Stanzl anticipates a challenging short-term for the German DAX index, with finance expectations indicating a potential fall below 24,000 points by early August 2025 due to various economic factors. This potential decline in the business sector could be exacerbated if the Wall Street experiences a downturn, potentially impacting the Dax significantly.
