German Blue-Chips Notch Eighth Straight Loss as Oil Spike and Inflation Fears Overshadow Earnings

Germany's DAX logs longest losing streak since 2020 as surging oil, sticky inflation, and Fed jitters overshadow strong corporate earnings from Adidas and Thyssenkrupp.

Frankfurt's benchmark index has logged its longest losing streak since the depths of the pandemic, sliding for the eighth consecutive session as a potent cocktail of surging crude prices, sticky inflation, and Federal Reserve uncertainty overwhelmed a flurry of upbeat corporate results.

The DAX closed Wednesday at 23,954 points, shedding 0.27% on the day after briefly touching an intraday high of 24,105 in early trade. The index now sits roughly 2% in the red since the start of the year, having breached its 200-day moving average — a technical threshold that has historically signaled caution for momentum traders.

The afternoon reversal was triggered by a sharp spike in energy markets. Brent crude surged as much as 6% to $117.36 a barrel, its highest level in a month, as escalating geopolitical tensions surrounding Iran rattled commodity traders. The move sent a chill through equity markets, erasing gains built on strong quarterly updates from several blue-chip names.

Adidas and Thyssenkrupp Lead the Charge

Adidas emerged as the standout performer, jumping 8.35% after reporting currency-adjusted revenue growth of 14% and operating profit of €705 million. Analysts praised the sportswear giant's operational momentum, calling the numbers a clear positive signal for the turnaround story.

Thyssenkrupp surged even more dramatically, climbing 9.8% after Finnish elevator maker Kone announced plans to acquire TK Elevator, lifting the valuation of the stake to €29.4 billion. Airbus added 5% on the back of fresh large-scale orders, while BMW edged higher on news it will integrate DeepSeek's artificial intelligence technology into its Chinese models.

Mercedes-Benz, however, proved a drag on the auto sector, slipping 0.5% after reporting a 17% decline in EBIT, largely attributed to weakening demand in China. The broader market breadth remained negative, with defensive heavyweights bearing the brunt of the selling pressure.

Defensive Stocks Take a Hit

Siemens Healthineers suffered the steepest decline among DAX constituents, falling 3.86%. Hannover Rück dropped 3.43%, while Merck lost 3.21%. Deutsche Bank gave up 1.83% despite posting a profit increase to €1.9 billion that beat analyst estimates — a classic case of profit-taking after a strong run.

The volatility gauge VDAX-NEW climbed above 23 points, and trading volumes came in above average, underscoring the anxiety gripping investors. The relative strength index slipped to 46, approaching neutral territory after weeks of weakening momentum.

Inflation and the Fed Cast a Long Shadow

Germany's inflation rate accelerated to 2.9% in April, adding to the nervousness around interest rate expectations. The yield on the ten-year Bund pushed toward 3.1%, reflecting the market's recalibration of rate-cut timelines. The Federal Reserve, for its part, is widely expected to hold its benchmark rate steady — all 103 economists surveyed agree on that point. But the focus will be on Chair Jerome Powell's press conference for any signals about the central bank's willingness to maintain a restrictive stance in the face of stubborn price pressures.

Technical Levels in Focus

Chart watchers are eyeing the 23,880-point level as a near-term support. A decisive hourly close below that threshold could open the door to a deeper correction toward 23,500. On the upside, the 24,400-point zone represents a formidable resistance barrier that would require a significant catalyst to breach.

The coming session promises no shortage of potential triggers. Airbus is due to publish detailed earnings, while Alphabet and Microsoft will report after the US close. How the DAX opens on Thursday will depend heavily on the interplay between Powell's tone, the tech earnings, and the direction of oil prices — a combination that has kept traders on edge for eight days and counting.