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Chart of the day: DE40 hold near ATH! Siemens and Deutsche Telekom shine with earnings!
German DAX futures (DE40) remain near all-time highs despite a correction in Asia, with marginal drops appearing more technical in nature. Disappointing results from memory makers (SanDisk, Western Digital) brought pressure back to AI-related companies, but the European session continues to be supported by solid earnings reports from traditional domestic businesses.
Technical Analysis: DE40 (D1)
DAX futures are pulling back 0.25%, even as the cash index gains another 0.1% today. DE40 remains in a strong uptrend, trading above three key exponential moving averages on the D1 timeframe (10-EMA, 30-EMA, 100-EMA). The correction is justified both by a breakout to a new peak near the upper boundary of the volatility range typical in recent months (yellow rectangle) and the RSI reaching overbought territory for the first time in a month. The 23.6% Fibonacci retracement level of the latest upward wave (around 26,100) remains key support, though the primary test for the trend would be a pull back toward the 10-EMA (yellow). A close above these levels should signal a firmly established bullish posture and readiness to defend the trend.
Source: xStation5
What Is Driving DE40 Volatility Today?
- German Industrial Orders: New orders in the German manufacturing sector rose 3.1% MoM (+6.5% YoY) in June 2026, driven by large-scale contracts in machinery (+12.7%) and electronics (+22.7%). However, excluding large-scale orders, the indicator dropped 0.5% MoM. Domestic demand surged 7.8%, while orders from the euro area fell 14.0%, and May data was heavily revised down from +1.9% to +0.3%.
- Deutsche Telekom (+5.5%): As the 5th largest company in the DAX index, Deutsche Telekom beat market expectations in Q2 2026, reporting adjusted EBITDAaL of €11.8 billion. In response to market volatility and strong performance, the company expanded its share buyback program by €3 billion to up to €5 billion. Additionally, free cash flow guidance was raised to around €20 billion, supported by robust results from T-Mobile US. Despite a 13.4% order intake decline at T-Systems, shares gained 5.5%, leading the German benchmark today.
- Siemens Pullback (-5%): On the flip side, the DAX’s largest constituent, Siemens, is dragging on the index despite posting record quarterly industrial profit and order intake (profit: +25% to €3.52B; orders: +13% to €27.90B). The primary growth driver was the Digital Industries segment (+44% profit), fueled by industrial AI demand in the US and China, prompting a full-year EPS guidance raise to €11.20–€11.50. The stock decline is likely driven by profit-taking after hitting all-time highs near €290, combined with broader negative sentiment surrounding AI-linked equities today.
