Futures on Germany's DAX index (DE40) are down more than 0.7% today, extending losses following Wednesday's sharp sell-off, while sentiment across European equity markets remains weak. Futures are trading near 25,080 points, bringing the psychologically important 25,000-point support level into focus. Elevated oil prices, rising bond yields and France's fiscal challenges are limiting the potential for a rebound as markets prepare for the upcoming U.S. quarterly earnings season.
The DAX fell 1.35% yesterday, ending a streak of three consecutive sessions of gains. The scale of the decline points to deteriorating short-term sentiment, while attempts to stabilize the German equity market have so far been unconvincing. Rising oil prices, elevated bond yields and fiscal tensions in France remain key risk factors for European equities. The combination of higher energy prices and borrowing costs could weigh on corporate margins and expectations for future earnings. Elevated expectations for technology companies' earnings and guidance are increasing market sensitivity to potential disappointments. According to Consorsbank, even minor signs of slowing AI-driven growth could increase the risk of a deeper equity market correction.
Technology stocks were among the weakest performers on the German equity market yesterday. Infineon fell 5.8% to EUR 60.95, while semiconductor equipment manufacturer Suss Microtec, a constituent of the MDAX, dropped 9.3%. The sell-off was primarily driven by rising bond yields and profit-taking, with Infineon having gained approximately 65% year-to-date. News of its quantum computing partnership with ZuriQ failed to improve sentiment. Fresenius Medical Care was yesterday's worst-performing DAX constituent, losing nearly 7% following the announcement of management changes, while financial stocks also came under pressure amid rising bond yields. The automotive sector showed relative resilience, with Volkswagen benefiting from reports that Germany and France may push to ease EU regulations on combustion-engine vehicles, which also supported shares of Renault and Stellantis.
DE40 Chart (D1 Timeframe)
DE40 futures are down more than 0.7%, falling below the 200-session exponential moving average (EMA200, red line), signaling a significant deterioration in the underlying trend. Although the index has fallen below this moving average five times this year and recovered relatively quickly on each occasion, the current breakdown is particularly notable as it follows another move below the EMA200 in late September and early October. Holding the 25,000-point level will be crucial for the bulls, with a recovery above 25,150 points representing the next important objective. Another key resistance level is currently located around 25,800 points, where the 50-session exponential moving average (EMA50, orange line) is situated.
Source: xStation5
Economic Calendar: U.S. Jobless Claims and ECB Meeting Minutes in Focus (08.10.2026)
Morning wrap: Wall Street and precious metals attempt to stabilize as oil gains nearly 2%
Daily summary: Wall Street recovers losses despite a surge in yields 🗽 Gold and silver retreat
BREAKING: EURUSD with limited reaction to Fed Minutes from September meeting
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.