DAX nears 25,410 as Volkswagen, Bayer and Rheinmetall drive moves

The DAX rose to 25,000 on Friday, moving toward the 25,410 resistance level after three major developments at index components: Volkswagen’s sale of its diesel engine unit, a U.S. Supreme Court ruling in favor of Bayer, and a drop in Rheinmetall shares following a cancelled naval contract.

The U.S. Supreme Court overturned a jury award to a Missouri plaintiff who had argued that Roundup caused his cancer. Justice Brett Kavanaugh wrote that the case raised the prospect of a cancer warning requirement that would conflict with the Environmental Protection Agency’s determination. The decision affects thousands of similar claims. Bayer bought Monsanto for $63 billion and its legal costs related to Roundup have exceeded $20 billion; the company settled for $10.9 billion in 2020 and recorded about $7.25 billion in further payouts earlier this year. Bayer’s shares have risen about 90% from their lowest level in 2025.

Volkswagen said it will sell its diesel engine unit to private equity firm Bain for €7.4 billion after an auction. The company said the sale is intended to free up capital as it faces stronger competition from Chinese automakers. Volkswagen’s chief executive described the restructuring as ‘leaner structures and processes’ that would allow Everllence to grow in markets such as data centers, the energy sector and shipping and let Volkswagen focus more closely on its core operations.

Rheinmetall, Germany’s largest defence group, saw its stock fall to about €900, the lowest level since February 24 and roughly 52% below its 2025 peak, after the German government cancelled the F126 frigate programme. Officials cited project delays and cost overruns and said the government will instead purchase eight MEKO frigates for anti-submarine warfare. Rheinmetall had been involved in the F126 project from the start, and the cancellation removes a potential order for the company.

On the charts, the index recovered from a low of 21,882 recorded on March 23. Chart analysts note the formation of an inverted head-and-shoulders pattern and that the DAX is trading above its key moving averages while sitting just below the pattern’s neckline at 25,410. The relative strength index has been rising.

Trading volume and volatility increased as investors reacted to the legal ruling, Volkswagen’s disposal and the government procurement decision. Market participants adjusted positions in response to the news across index components.