The German DAX Index has crashed sharply in the past few days as investors brace for higher tariffs. It plunged to a low of €23,425, its lowest point since June 23, down by 5% from its highest point this year. Here are some of the top catalysts for the DAX Index this week.
Top DAX Index earnings
The main catalyst for the German DAX will be the second-quarter results of some of its biggest constituent companies. Some of the top firms to watch this week will be Infineon, Deutsche Post, Siemens Energy, Commerzbank, Beiersdorf, Bayer, Siemens, Deutsche Telekom, Allianz, Mrck, and Munich Re.
Commerzbank, the second-biggest German bank after Deutsche Bank, will be one of the top DAX stocks to watch because it is one of its best-performing this year. Its stock has jumped because of the ongoing rally among European banks.
Commerzbank stock has also jumped because of the ongoing accumulation by Unicredit, a top Italian bank that is expected to make a formal bid for the company.
Siemens Energy will also be in focus this week because of its recent performance this year. It has jumped by over 320% in the last 12 months, transforming it into a $80 billion juggernaut.
Its performance is notable as the company nearly went bankrupt a few years ago and was bailed out by the government. Its results will provide more color about its business and its profitability.
Continental is another top DAX Index stock to watch this week as it publishes its results. Its numbers will be important because it is one of the biggest suppliers to German automakers, which are now being affected by Trump’s tariffs.
Meanwhile, Allianz, one of the biggest insurance companies, will release its numbers this week. These numbers will be announced a week after the company confirmed a data breach affecting its American life insurance unit, which impacted 1.4 million customers.
The other notable DAX Index stock to watch this week is Bayer, a key player in the human health and crop sciences industries. Its results will come at a time when the Bayer share price has jumped by over 53% from its lowest point in 2024 as investors bet on a turnaround.
US tariffs kicks off and key economic data
The other notable catalyst for the DAX Index wil be the start of tariffs by the United States. In a deal announced last week, most goods exported to the US from Germany will be charged a 15% tariff, higher than the current 10%.
These tariffs will hurt many companies, especially automakers like Porsche, Daimler, Mercedes, BMW, and Volkswagen. German automakers shipped over 430,000 new vehicles to the US last year.
The DAX will also react mildly to key economic data, including the German services and composite PMI and export and import numbers. These numbers will likely have an impact on the European Central Bank (ECB).
DAX Index technical analysis
The daily chart shows that the DAX Index pulled back from a high of €24,634 on July 10 to the current €23,420. It has retested the lower side of the ascending channel and moved slightly below the 50-day moving average. The Relative Strength Index (RSI) has moved below the neutral point at 50.
Therefore, the DAX Index will likely continue falling as sellers target the psychological point at €23,000. A move below that level will point to more downside to the 200-day moving average at €22,135.
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