S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Key takeaways
- DE40 (the German DAX index futures contract) is advancing and testing the 25,000-point area.
- SAP shares are up more than 6% following the company’s quarterly earnings release.
- Germany’s PMI data came in significantly stronger than market expectations.
SAP’s post-earnings rebound and strong PMI lift DE40 The DAX opened Friday’s session in positive territory, supported primarily by a strong rebound in SAP shares. Improved sentiment surrounding Germany’s largest technology company overshadowed concerns about the latest U.S. tariffs, with the benchmark German index advancing toward the 25,000-point mark.
- SAP shares are up nearly 7% after reporting second-quarter results. Investors reacted positively to strong growth in the company’s cloud business, which remains its key growth engine. Given SAP’s significant weighting in the DAX, the rally has helped offset pressure stemming from the latest U.S. trade measures.
- The United States has imposed tariffs of 10% and 12.5% on imports from 60 trading partners, including the European Union. The measures came into effect on Friday morning German time, coinciding with the expiration of the temporary 10% global tariff rate.
- Markets have shown a relatively muted reaction to the new tariffs, as they do not represent an additional burden compared with the previous tariff framework.
- Volkswagen is among today’s notable laggards. Despite strong demand for smaller electric vehicles, the automaker warned investors to expect weaker revenue, sending its shares down almost 2.5%.
- As a result, Volkswagen ranks among the weakest performers in the DAX, with investors focusing on the company’s deteriorating sales outlook. Meanwhile, in the SDAX index, Atoss Software is attracting attention as its shares climb nearly 7% after the company reported strong revenue and profit growth for the first half of the year.
- Germany’s Composite PMI rose to 51.2, well above expectations of 49.7 and up from 49.5 in the previous month. The Services PMI held steady at 49.6, beating the consensus forecast of 49.0 and improving from 48.6 previously, while the Manufacturing PMI climbed to 52.2, surpassing both expectations of 50.5 and the prior reading of 50.3.
DE40 chart (D1 interval)
The DAX futures contract is currently testing the lower boundary of its ascending price channel. A move back above 25,100 points , where the 50-period EMA (orange line) is located, could signal renewed bullish momentum. Key support is situated around 24,500 points . A break below this level could potentially open the way for a decline toward 23,800 points , where previous price reactions occurred, marked by the long lower candle wicks formed in April and May this year.
Source: xStation5
