{"id":49814,"date":"2026-06-16T11:34:56","date_gmt":"2026-06-16T11:34:56","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/16\/dax-index-analysis-as-hedge-funds-place-huge-short-bets-against-german-automakers\/"},"modified":"2026-06-16T11:34:56","modified_gmt":"2026-06-16T11:34:56","slug":"dax-index-analysis-as-hedge-funds-place-huge-short-bets-against-german-automakers","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/16\/dax-index-analysis-as-hedge-funds-place-huge-short-bets-against-german-automakers\/","title":{"rendered":"DAX index analysis as hedge funds place huge short bets against German automakers"},"content":{"rendered":"
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The DAX index jumped this week, reaching a high of \u20ac25,000, its highest point since June 2nd. This rebound happened as crude oil prices retreated after the US deal with Iran. Still, the index faces a major risk as hedge funds continue shorting German car companies.<\/p>\n

Hedge funds are shorting German automakers<\/h2>\n

Top hedge funds are shorting German automakers, a sign that they expect their shares and bonds will struggle over time. <\/p>\n

They are mostly doing this as investors remain concerned about the rising competition from the cheaper Chinese cars from companies like BYD, Nio, and XPeng.<\/p>\n

Data shows that bonds issued by companies like Volkswagen, Mercedes-Benz, and BMW are among the most shorted. <\/p>\n

Some of the top funds that are shorting these bonds and equity are Marshall Wace and Two Sigma. In a note, a top analyst said<\/a>:<\/p>\n

\u201cChina has become a source of competition rather than profits. Investors are increasingly questioning whether the industry\u2019s earnings power can ever return to pre-China-slowdown levels.\u201d<\/p>\n

Hedge funds have also shorted other European automakers like Stellantis, the parent company of Jeep and Fiat, and Renault. <\/p>\n

Data shows that Volkswagen was the third-most shorted investment-grade bond in Europe, with Stellantis being number 1. <\/p>\n

For example, short interest in Volkswagen’s \u20ac750 million perpetual bond has risen sharply this year.<\/p>\n

Hedge funds are also shorting BMW\u2019s 750 million euros 2035 bond and its two 500 million bonds due in 2032 and 2033. The same trend is happening with Mercedes-Benz.<\/p>\n

German automakers are facing major challenges<\/h2>\n

German automakers, which are crucial parts of the economy and the DAX index, have struggled in the past few months. <\/p>\n

BMW stock has dropped by 26% this year, making it one of the worst-performing companies in the index. <\/p>\n

Porsche Automobil, Mercedes-Benz, and Volkswagen Group have fallen by over 21%, 17%, and 12%, respectively, this year. <\/p>\n

These companies have retreated amid the ongoing short-selling among investors and the fear of Chinese competition. <\/p>\n

Just recently, top companies like Stellantis, Volkswagen, and Renault have called for a \u201cMade in EU\u201d target that rewards manufacturers who keep their production in the bloc.<\/p>\n

Still, the challenge is that some Chinese companies are opening plants in Europe, a move that will bring them closer to customers and avoid the costly tariffs. <\/p>\n

BYD is spending about 2 billion euros this year to develop charging infrastructure in the bloc. A Federated Hermes analyst said:<\/p>\n

\u201cIf they – Chinese manufacturers – continue combining rapid innovation cycles with lower price points, that creates a difficult backdrop for the established European carmakers.\u201d<\/p>\n

The German DAX index has also underperformed the market because of the lack of exposure to the AI industry. Indeed, a closer look at the best gainers in the index this year shows some exposure to the industry. <\/p>\n

Infineon Technologies, a top semiconductor company, has jumped by 114% this year. Siemens Energy<\/a>, <\/strong>which provides power, has also soared by 18% this year.<\/p>\n

DAX Index technical analysis<\/h2>\n
<\/figure>\n

DAX Index chart | Source: TradingView<\/em><\/p>\n

Technicals suggest that the DAX Index may rebound despite these risks. <\/p>\n

For one, it has now formed an inverted head-and-shoulders pattern, a common bullish reversal sign in technical analysis. The neckline is at 25,460.<\/p>\n

The index has also jumped above the 50-day and 100-day Exponential Moving Averages (EMA). That is a sign that bulls have prevailed. <\/p>\n

Therefore, a strong bullish breakout will be confirmed if the stock jumps above the key resistance level at 25,460. <\/p>\n

The post DAX index analysis as hedge funds place huge short bets against German automakers<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The DAX index jumped this week, reaching a high of \u20ac25,000, its highest point since June 2nd. This rebound happened as crude oil prices retreated after the US deal with Iran. Still, the index faces a major risk as hedge funds continue shorting German car companies. Hedge funds are shorting German automakers Top hedge funds <\/p>\n","protected":false},"author":1,"featured_media":49815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-49814","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world"],"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49814"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49815"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}