Equity market, DAX, experiences mild declines and balanced transactions during Monday's trading session
On Monday, August 18, 2025, the DAX index experienced a slight decline of 0.18%, closing at 24,314.77 points. According to market expert Andreas Lipkow, the trading was calm by midday, with a relatively balanced ratio of winners to losers in the Dax.
Rheinmetall, RWE, and Heidelberg Materials suffered the biggest losses, while Munich Re, Sartorius, and Commerzbank led the Dax. Market participants were increasing their holdings in selected sectors and industries by midday, with defensive sectors like utilities and pharma outperforming due to their resilience amid trade tensions. Industrials showed adaptation through electric vehicle (EV) and automation trends, as well as reshoring efforts, reflecting realignment within the DAX composition.
The DAX faced resistance near technical levels aligned with Fibonacci extensions, which possibly capped further upward moves on Monday. The index maintained a bullish momentum overall, staying above the Ichimoku Cloud, suggesting underlying strength despite the minor dip. Pivot levels around 23,355 provided support to price action.
The European common currency (euro) was weaker at midday, with one euro worth 1.1644 US dollars, and one dollar worth 0.8588 euros. The euro's depreciation in 2025 benefited German exporters by boosting earnings, though this also highlighted currency hedging needs for investors. This depreciation is tied to ECB policy easing, including rate cuts and Targeted Purchase Program (TPI) support that stabilized the DAX despite currency headwinds.
Oil prices (WTI/USD) showed a mixed technical picture on Monday, with bearish potential indicated. Although the overall momentum for oil was bullish, resistance near pivot points suggested a possible price reversal downward toward support levels. The oil price was below the Ichimoku Cloud, emphasizing bearish momentum strength for that session.
Trading volume was relatively low by midday, with no signs of urgency. Market participants were taking profits from some previously well-performing companies by midday. Overall, the DAX's slight decline on Monday reflected a complex interplay of cautious technical resistance, sectoral realignment favouring defensive stocks and industrial adaptation, with ECB policy easing and euro depreciation providing both support and challenges. Oil prices showed signs of weakness technically despite an overall positive trend.
Investors were increasing their holdings in various sectors and industries by midday, with the defensive sectors like utilities and pharma outperforming due to their resilience amid trade tensions, showing an active interest in the business sector. In the industry sector, industrials showed adaptation through electric vehicle (EV) and automation trends, as well as reshoring efforts, which reflect financial considerations and changes within the DAX composition.
