DAX Recovery Accelerates as Industrial Stocks Lead Gains

DAX Back at 26,000: Buyers Step In on Weakness

The DAX briefly reclaimed the psychologically important 26,000-point level on Wednesday morning. After opening weak at 25,850.40 and falling to an intraday low of 25,536.50, the index reversed sharply higher and reached an intraday high of 26,013.50. It was last trading at 25,972 points, up 153.50 points (+0.59%). +

This appears to be more than just a technical rebound. Buyers actively used the weakness following the U.S. midterm elections to add exposure rather than extend losses. At the same time, the Euro Stoxx 50 rose 0.87% to 6,194.50, signalling improving risk appetite across European markets.

What's Driving the Market Today?

The main focus is the market's reaction to the U.S. midterm elections. The Democrats have significantly weakened President Donald Trump and the Republicans, with market reports indicating they have gained control of both the House of Representatives and the Senate. Surprise victories were reported in South Carolina, Texas and Ohio.

For Europe, however, this is not necessarily a negative outcome. Lower U.S. Treasury yields and a weaker dollar can make European equities relatively more attractive. The euro rose around 0.5% to $1.1249, while the U.S. Dollar Index fell 0.3% to 101.4.

DAX: Winners and Losers

A clear market rotation is visible. Investors are reducing exposure to highly valued AI and consumer stocks and reallocating capital into companies with stronger earnings visibility, industrial demand and exposure to Europe's energy transition.

Stock	Performance	Commentary
Bayer	+3.64%	Strong gain after raising its 2026 earnings outlook
Siemens Energy	+2.27%	Energy infrastructure remains a relative-strength leader
Siemens	+1.49%	Industrial demand continues to support quality cyclicals
Infineon	+0.77%	Semiconductor stocks stabilising after the AI correction
SAP	-1.83%	High DAX weighting makes it vulnerable to AI regulation concerns
Volkswagen Preferred	-2.25%	Auto stocks remain under pressure
adidas	-2.75%	Consumer stocks continue to be reduced
MTU Aero Engines	-3.12%	Aerospace growth stocks under selling pressure
Fresenius Medical Care	-3.60%	Healthcare remains weak despite defensive characteristics
Zalando	-6.30%	Largest DAX loser as consumer weakness is punished

Bayer remains the key single-stock story. The shares rose 3.64% to €51.84 and generated the highest trading volume within the DAX, suggesting institutional demand rather than merely a short-term technical rebound.

Siemens and Siemens Energy further reinforce the rotation theme. Investors are not broadly increasing risk exposure, but are selectively targeting companies with visible order books, investment cycles and exposure to grid expansion, automation and the energy transition.

Technical Picture: 26,000 Remains the Key Pivot

From a technical perspective, 26,000 points remains the critical level for the DAX. The index traded above it intraday before consolidating slightly below it, which is normal after a sharp rebound from the session low.

• Key support: 25,850 to 25,900, the opening area and starting point of today's recovery.
• Next support: 25,800. As long as the DAX remains above this level, the short-term recovery scenario remains intact.
• Key resistance: 26,000. A sustained close above this level would be a bullish confirmation signal.
• Next upside target: 26,030, today's high and the high from the previous two sessions.
• Further resistance: 26,150, last week's high.
• Major target: 26,618.74, the DAX all-time high.

Observations

The current environment is less about buying or selling everything and more about selective positioning.

• Favour: Siemens, Siemens Energy, Bayer and selected semiconductor names. These companies benefit from visible demand, earnings catalysts and Europe's investment cycle.
• Remain cautious with: SAP, Zalando, auto stocks and other highly valued growth names while the AI regulation debate after the U.S. election continues.
• Monitor closely: U.S. yields, the dollar and the euro. Further declines in yields would likely support European equities.

Conclusion

The DAX has tested and intraday reclaimed the 26,000-point level. The rebound is broad-based, led by industrial quality stocks, and suggests investors are treating the U.S. election reaction as a rotation opportunity rather than a trigger for broad risk reduction.

The strategic message is clear: buy quality, reduce AI concentration risk, and use 26,000 as the key confirmation level. As long as the DAX remains above 25,800, the recovery remains in control. A sustained close above 26,000 would reopen the path toward the all-time high at 26,618.74.

By Philip J Papageorgiou - Head of Investment Research

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