On Thursday, the DAX suffered losses, closing at 24,491 points by the end of Xetra trading-a decline of 0.5 percent from the previous day’s close.
Christine Romar, Head of Europe at CMC Markets, remarked that although the DAX had previously outperformed the hoped‑for economic stimulus, investors are now reluctant to buy on increasingly positive indicators such as the robust order‑book figures reported today. “The German industry could finally leave behind its most significant monthly orders since two years” she added.
According to Romar, the government’s special fund is finally beginning to show results. “Other indicators have delivered mixed signals in recent weeks, but the view of the industry’s full order books is now crystal clear. Those orders simply need to be processed, and the economic engine can shift into a higher gear”.
However, she cautioned that the markets and the economy do not always move together. “We’ve seen this dynamic over the past, somewhat recessionary, two years. While the economy was flat, the DAX hit record highs one after another. Now it’s the opposite. Sentiment is improving, yet the stock market is falling”.
The decline, Romar said, is partly due to pressure on the former favorites at Wall Street, especially the high‑weight Magnific‑Seven, whose strong quarterly results are being knocked down by fears of too‑high investments in the AI future that have not yet monetised quickly. Anything riskier, like the cryptocurrency market-with Bitcoin leading the decline-has accelerated its downward trajectory in recent days, thereby speeding the spiraling cycle of liquidations.
“This downward spiral also affects the DAX, which must abandon the 25,000‑point mark that was still above it as of Tuesday, at least as a short‑term objective” Romar warned. “The apparent breakout turns out to be a classic bull trap. 2026, still only a young year for the stock market, now faces its first serious test. If the markets fail to stabilise in the coming days, even long‑term investors may be forced to fold”.
The euro weakened in the afternoon, trading at $1.1789, which means one dollar sold for €0.8482.
Gold was also in decline, trading at $4.857 per troy ounce-a 2.2 percent drop-equivalent to €132.45 per gram.
Brent crude fell sharply, with a barrel priced at $67.35 at 5 p.m. German time on Thursday, down 211 cents, or 3.0 percent, from the previous day’s close.
