German Blue-Chips Ride Oil Price Plunge into Critical Earnings Week
Published on 04/18/2026 at 08:11 | Redaktion boerse-global.de
A sudden easing of Middle East tensions provided German equities with a powerful tailwind to close the week. The DAX index finished Friday's session at 24,154 points, securing a weekly gain of approximately 1.5 percent. The catalyst was Iran's decision to reopen the Strait of Hormuz, which triggered a sharp sell-off in oil markets and removed a key geopolitical risk premium from stock valuations.
Brent crude prices plummeted around ten percent, while the US benchmark WTI briefly sank to about $80 per barrel. This dramatic shift sparked a pronounced sector rotation within the German benchmark. Companies with high energy consumption soared, with Lufthansa and Fraport each climbing roughly seven percent on the prospect of lower jet fuel costs and safer air corridors. Software firm Nemetschek led the gainers, jumping almost ten percent. Conversely, energy and utility stocks suffered, with RWE shedding 3.8 percent and fertilizer producer K+S sliding nearly five percent.
From a technical perspective, the landscape has brightened considerably. The index successfully defended against further losses and reclaimed key moving averages, including the 200-day line around 24,111 points. The Relative Strength Index (RSI) currently reads 37.8, indicating significant room for advancement before conditions become overbought. The local high at 24,363 points now stands as the immediate resistance level to watch. A failure to breach this barrier could trigger a fresh wave of selling, with initial support seen at the recent daily high of 23,759 points.
Should investors sell immediately? Or is it worth buying DAX?
The true test, however, begins now. The coming week presents a major challenge for equity valuations as Germany's corporate earnings season kicks into high gear. Investors are scrutinizing corporate payout policies with particular intensity this year. A roster of heavyweight companies are set to report or hold annual meetings.
On Thursday, Sartorius presents quarterly figures, while E.ON, Beiersdorf, and Schaeffler convene for their shareholder meetings. Friday brings a deluge of first-quarter results from BASF, Volkswagen, and DHL, alongside annual meetings for Bayer and Merck KGaA.
This corporate reckoning will be flanked by pivotal macroeconomic signals. ECB President Christine Lagarde and German Chancellor Friedrich Merz are scheduled to speak at the German Banking Industry Committee's annual reception on Monday, with any comments on future interest rate policy likely to resonate in equity markets. Later in the week, the ifo business climate index will offer crucial early evidence on whether Europe's largest economy is finding a path out of stagnation.
The market's trajectory hinges on these combined factors. Should the upcoming corporate results and the ifo barometer deliver solid readings, a breakout toward the 24,300-point mark is plausible. Disappointments from giants like BASF and Volkswagen, however, risk a swift retreat back below the 200-day moving average. For the year, the DAX remains in negative territory, down just under 1.6 percent, with its 52-week high at 25,420 points still nearly five percent away.
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