The DE 40 stock index has completed its correction and resumed growth. The DE 40 forecast for today is positive.
DE 40 forecast: key trading points
- Recent data: Germany’s ZEW Economic Sentiment Index (preliminary) for August 2025 came in at 34.7
- Market impact: the decline indicates worsening economic sentiment, higher uncertainty, and weak confidence in recovery prospects
DE 40 fundamental analysis
The ZEW Indicator of Economic Sentiment in Germany for August 2025 stood at 34.7, well below the forecast of 39.5 and the previous reading of 52.7. This indicator reflects institutional investors and analysts’ expectations for the country’s economic development over the next six months. For the German equity market, it signals rising risks for corporate earnings and business activity. Expectations of weaker economic growth could limit investor appetite for equities, raising the likelihood of corrections in stock indices.
For the DE 40, the decline in business sentiment may create short-term pressure on prices. The most affected will be economically sensitive sectors, while defensive industries such as healthcare, telecommunications, and consumer staples could show relative resilience since their business models are less exposed to cyclical fluctuations.
Germany ZEW Economic Sentiment Index: https://tradingeconomics.com/germany/zew-economic-sentiment-index
DE 40 technical analysis
The DE 40 index has broken above the resistance level and resumed its upward trajectory. Resistance has formed at 24,450.0, while support is located at 24,015.0. Volatility is clearly rising, reflected in the frequent changes of the broader trend. In the medium term, however, the uptrend is likely to dominate.
The DE 40 price forecast considers the following scenarios:
- Pessimistic DE 40 scenario: a breakout below the 24,015.0 support level could push the index down to 23,370.0
- Optimistic DE 40 scenario: a breakout above the 24,450.0 resistance level could drive the index to 25,150.0
DE 40 technical analysis for 18 August 2025
Summary
The fall in the ZEW Economic Sentiment Index reflects growing concerns about Germany’s future economic growth. For the DE 40, this could mean increased volatility and short-term corrections, especially in cyclical sectors, while defensive assets remain relatively more attractive to investors. The next upside target for the index is 25,150.0.
Source: Roboforex