DAX Under Pressure as Investors Increase Short Bets

Dow Jones07-21

1119 GMT - The German DAX is being pushed into bearish territory as investors reduce risk and add to bets against the index, Citi analysts write. However, the increase in short positioning means that the index could be positioned for a short squeeze--where investors rush to close out their bets against an asset, causing the price to jump--if sentiment improves, the analysts say. More broadly, last week's global AI chip-led selloff triggered selling across major equity markets, the analysts say. "Upcoming earnings will be key in determining whether positioning stabilizes or unwinds further," the analysts write. The DAX nudges up 0.2%, but is relatively flat over the past month, falling 0.4%. (josephmichael.stonor@wsj.com)

 

(END) Dow Jones Newswires

July 21, 2026 07:20 ET (11:20 GMT)

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