Current Status of the DAX Crash
The DAX, the leading index of the German stock market, is experiencing a dramatic wave of sell-offs triggered by aggressive US tariff policies. On Monday, April 7th, 2025, the DAX lost a massive 9.16 percent, falling to 18,751.75 points. During the day, a drop of around 10 percent was recorded, reaching 18,489.91 points, before the index slightly recovered and fell to 19,433.90 points, which still indicates a decline of 5.85 percent.
Causes of the DAX Crash
The main cause of the crash is the escalating trade policy of the USA, particularly the tariffs imposed by President Donald Trump on imports from almost all countries. These measures have led to a global trade crisis, exacerbated by retaliatory tariffs from China and potential EU tariffs on American products.
Market Reactions
- European Markets: In addition to the DAX, other European markets have also been severely affected. The British FTSE 100 dropped by 4.83%, and the French CAC 40 by 6.14%.
- Asian Markets: The Asian markets have also suffered significant losses, some of them in double digits.
- US Markets: Futures on US indices have also declined, indicating broad market weakness.
Economic Impact
The trade wars have led to increased economic concerns. Analysts are warning of a possible global recession and rising inflation. US Federal Reserve Chairman Jerome Powell has also expressed concerns about the impact of the tariff policy on the US economy.
Political Reactions
The EU is discussing strategies to persuade the USA to back down. Trump has signaled a willingness to talk, but under certain conditions. His trade minister has emphasized that the US government will maintain its hard line.
Overall, the DAX crash has wiped out the significant gains since the beginning of the year and has led the markets into a phase of uncertainty and decline.