SAP Shockwaves Slam the DAX: Cloud Slowdown Triggers Market Sell-Off
It was a day to forget for the German leading index. While the headline figures from the software giant SAP seemed solid at first glance—with earnings beating expectations and revenue coming in close to forecasts—the stock market trades on the future, and that outlook was disappointing. The guidance for the company’s critical cloud business grew slower than analysts had anticipated. This was enough to trigger a wave of panic, causing the SAP share price to plummet by over 15% at its low. As the heaviest weighted stock in the DAX, SAP dragged the entire index down with it, resulting in a 2% loss for the broader market.
Geopolitical Tension: Iran Conflict Overshadows Earnings Season
The intensity of the reaction to SAP’s results was amplified by an already nervous market environment. Investors remain hyper-focused on the potential for US military intervention in Iran. Reports of US forces moving into position have driven risk aversion to new highs. In such a volatile climate, even minor disappointments in corporate guidance are punished severely. The big question now is whether SAP can stage a quick recovery or if the rotation into more stable sectors will continue. Given SAP's influence, its trajectory will largely dictate whether the DAX can find its footing.
Friday Data Showdown: GDP and Inflation in the Crosshairs
Today, Friday, marks a critical crossroads for the markets as a barrage of high-impact economic data is released:
10:00 AM CET: German Gross Domestic Product (GDP).
11:00 AM CET: Eurozone GDP figures.
2:00 PM CET: German Consumer Price Index (CPI) / Inflation data.
2:30 PM CET: US PCE Index (the Fed's preferred inflation metric).
These figures will decide whether the DAX finds support or if the downward spiral accelerates heading into the weekend.
Technical Analysis: DAX Tests the 100-Day Moving Average
From a technical standpoint, the DAX is now severely battered. The predicted pivot toward the downside has materialized, and the index is currently testing its 100-day moving average. This level is a double-edged sword: it can act as strong support for bargain hunters, but if it breaks, it could trigger a "cascade" effect as stop-loss orders are hit and short-sellers gain momentum. Caution is the top priority for the final trading hours of the week.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.