German Stocks Slip Below 25,000 as Asian Tech Selloff and Index Shuffle Rattle Frankfurt
Published on 06/23/2026 at 16:07 | Redaktion boerse-global.de
Frankfurt’s blue-chip index dropped below the psychologically important 25,000 threshold on Tuesday, caught in a global technology selloff that began in Asia and quickly spread to European trading floors. The DAX was last at 24,895, down nearly one percent on the day, as investors took profits in the very tech stocks that had propelled the benchmark to within striking distance of its January record.
The trigger came from overnight trade in Japan and South Korea, where the KOSPI plunged almost ten percent amid a broad-based exit from high-flying technology names. The wave of risk aversion hit Frankfurt just as the market was digesting a flurry of corporate actions — a Hochtief index promotion, a multibillion-euro capital raising at RWE, and an upgraded outlook from Brenntag.
Monday’s Rally Quickly Undone
Just one day earlier, the DAX had closed at 25,140, adding 0.62 percent in a session dominated by a six percent surge in Infineon shares and a four percent advance in Zalando. MTU Aero Engines rose nearly 1.7 percent. But the same session also saw RWE under pressure after the utility announced plans to raise roughly €4 billion through a share placement with institutional investors at €54.00 apiece. The proceeds will fund an increase in RWE’s indirect stake in grid operator Amprion to 55 percent — a deal worth around €3.6 billion. Anchor investors including the Qatar Investment Authority and Norway’s Norges Bank have already committed to purchases totalling €1 billion.
Hochtief’s Bumpy Welcome to the DAX
Hochtief, the Essen-based construction group, officially replaced Porsche in the index on Tuesday, but the promotion has so far failed to spark a rally. The stock gave up ground after its inclusion. Passive funds had been forced to buy the shares in advance of the change; with that technical buying now concluded, early-positioned investors are taking profits. The effect is amplified by a tight shareholder structure: Spanish parent ACS holds 80 percent, leaving a thin free float that can exaggerate price swings.
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Corporate Bright Spots and Softer Data
Brenntag offered a counterweight, lifting its full-year guidance on better margins and robust demand. The chemicals distributor now expects operating profit to land between €1.25 billion and €1.40 billion for the current year.
On the macro front, the German manufacturing PMI slipped to 50.1 in June, barely above the expansion threshold and down from 50.5 a month earlier. The BDI slashed its 2026 growth forecast to 0.4 percent from 1.0 percent, while the Ifo Institute remains a touch more optimistic at 0.8 percent. The euro edged lower, changing hands at $1.1423 early Tuesday, and futures for the S&P 500 and Euro Stoxx 50 pointed to modest additional losses of 0.12 percent and 0.28 percent, respectively.
Technicals and the Road Ahead
Despite the day’s setback, the DAX holds more than one percent above its 50-day moving average at 24,560. The relative strength index stands at 59.3 — neutral territory — while the MACD sits in negative ground. Immediate support is seen around 24,600 points, with a firmer floor at 24,771. Resistance remains at 25,400.
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The index still trades less than 1.5 percent below its 52-week high of 25,507 set in January. Year to date, the DAX has gained roughly eight percent. Investors who bought at the March trough of 21,864 are sitting on a near-15 percent advance.
All eyes now turn to the afternoon’s flash purchasing managers’ indices for the euro zone and Germany. A weaker-than-expected reading in the manufacturing sector could test the next support levels quickly. Whether RWE’s capital increase will be fully absorbed without further disruption should become clearer in the coming days.
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