DAX Defensives and SAP Shield Against Cyclical Storm; 50-Day Average Under Siege

German DAX drops 1.29%; cyclicals slide, Zalando tumbles on BaFin probe, SAP gains; index holds above 50-day MA. Macro data next.

The German benchmark ended a lacklustre session on Friday with a 1.29% loss to 24,671, as heavy selling in cyclical shares overwhelmed the counterweight provided by SAP and consumer-facing defensive stocks. The market’s tone was set from the opening bell, with the 25,000-point level rapidly disappearing from view.

Zalando was the standout loser, tumbling 6.32% to €24.92 after Germany’s financial regulator, BaFin, launched a review of the online retailer’s previous fiscal year accounts. The news compounded a broader tech rout that also hit Infineon, which shed 4.52% to €78.30, and Siemens Energy, which slumped 5.84% to €153.92. Auto makers followed suit: Volkswagen fell 3.91% and Mercedes-Benz dropped 2.91% to €43.34. Of the 40 DAX constituents, 28 closed in negative territory (26 by a stricter count in one account), while only 14 advanced.

Yet the downside was far from universal. SAP rose 2.16% to €135.14, providing the single largest positive drag on the index. Beiersdorf and Henkel both added roughly 2.14%, and adidas matched that pace. The rotational pattern was unmistakable: investors fled rate-sensitive cyclicals and took refuge in software and defensive household names.

The selling pressure was orderly rather than panicked. The VDAX-NEW volatility index climbed 3.50% to 17.96 points, and trading volume was about 3% below the five-day average. Gold, a traditional safe haven, advanced 1.55% to $4,090, while Brent crude fell 1.23%. The euro edged up to $1.1399, adding a headwind for export-heavy DAX companies.

Chartwatchers are now focused on the 50-day moving average, which sits at 24,603-24,604 points. Friday’s low of 24,548-24,547 held, and the close at 24,671 leaves the index just above that technical floor. The Relative Strength Index stands at 48.3, a neutral reading that leaves both upside and downside open. On balance, the DAX has gained a slender 0.54% since the start of the year, still 3.3% below its 52-week high of 25,508.

The coming week brings a series of macro releases that could tip the balance. Chinese manufacturing PMIs, eurozone inflation data and German labour market figures for June are all due. If the index can defend its recent low around 24,550, the technical picture remains constructive. A break below that area, however, would open the door to the 24,300 zone, where the 100-day and 200-day moving averages converge.