VW’s Restructuring Rally Bucks DAX Downtrend as Zalando Probe and Asia Tech Rout Rattle Investors

The DAX ended the trading week at 24,671 points, losing 1.29% on Friday, but the headline figure masks a stark divergence beneath the surface. While technology stocks and e-commerce names took heavy fire, Volkswagen posted a surprising 3.9% gain – a move analysts attribute to investor approval of the automaker’s sweeping restructuring plans, which include eliminating up to 100,000 roles worldwide and potentially shuttering four German plants. The IG Metall union and works council have already vowed to fight the proposals, with a final board decision scheduled for July 9.

The broader weakness was driven by three simultaneous headwinds. A sharp selloff in Asian technology markets set the tone overnight. Japan’s Nikkei tumbled 4.15% and South Korea’s KOSPI cratered 6% after reports emerged that Apple is facing higher chip costs and the planned OpenAI initial public offering may be delayed. SoftBank’s steep decline stoked fears of a broader tech contagion, pulling Infineon down 4.52% on the Frankfurt floor. Later in the session, geopolitical tensions escalated when Iranian Revolutionary Guards allegedly attacked a freighter in the Strait of Hormuz, sending safe-haven demand surging. Gold climbed to around $4,081 per ounce, while Brent crude closed volatile at roughly $73.70 a barrel.

The heaviest individual blow landed on Zalando. The online fashion retailer’s stock slid 6.32% to €24.92 after Germany’s financial regulator BaFin announced it is probing the company’s 2025 consolidated financial statements. The investigation centers on possible irregularities tied to the disclosure of a transaction related to the About You acquisition. Zalando has publicly dismissed the matter as purely formal, but the market reacted with a sharp selloff. DZ Bank undercut sentiment further by slashing its price target from €38 to €27.

Should investors sell immediately? Or is it worth buying DAX?

Investors rotated aggressively into defensive names to cushion the damage. SAP rose 2.16% to €135.14, while consumer goods heavyweights Beiersdorf and Adidas each added roughly 2%, providing a critical counterweight that stopped the DAX from sliding deeper. Without those gains, the index would have breached the 24,600 level intraday.

Technically, the DAX remains perched just above its 50-day moving average of 24,603 points. The 200-day average sits at 24,277, offering a more distant safety net. The distance from the January all-time high of 25,508 stands at 3.28%. The relative strength index at 48.3 suggests the market is not yet oversold, but volatility is clearly on the rise – the VDAX-NEW index jumped 3.5% as investors hedged against further downside.

Looking ahead, the European Central Bank’s annual forum in Sintra, Portugal, will dominate the early-week narrative, with policymakers’ comments on growth and monetary policy likely to set the tone. Meanwhile, U.S. inflation data for May topped 4%, reigniting expectations of another Federal Reserve rate increase – a development that could weigh heavily on export-oriented DAX constituents. On the chart, the 24,550 support level is the first line of defence; a break below that could accelerate the current downward momentum.