DAX 40

Key insight

SAP's blowout Q2 beat (+10% today) has single-handedly rescued the DAX from a near one-month low at 24,763, but the ECB's hawkish hold at 2.25% deposit rate and $89+ oil prices cap the upside until geopolitical risk (US-Iran) definitively de-escalates.

The DAX is consolidating just above the key 25,000 psychological level after a sharp -4% pullback from the 6 July all-time high of 25,900.10, with today's SAP-led rebound (+10%) partially offset by the ECB holding rates and leaving the door open to hikes.

Main risk

ECB Hawkish Hold + Potential Rate Hike Signal

The ECB held the Deposit Facility Rate at 2.25% on 23 July and left the door open to future hikes, which pressured German equities -1.56% on the day and raises the cost of capital for rate-sensitive DAX sectors like real estate, utilities, and growth tech.