The recent US tariffs announced by President Donald Trump have massive global impacts on stock markets. The DAX, the German stock index, suffered significant losses last week and cannot overcome the shock from the tariffs. These developments are highly relevant for investors as they have direct effects on the German stock market.
Impacts of the US Tariffs on the DAX
- Massive Price Losses: The DAX recorded a weekly loss of more than eight percent last week, representing its largest drop since the beginning of the Russian war of aggression against Ukraine in spring 2022. On Monday, the DAX plunged by ten percent before recovering slightly.
- Global Market Developments: The tariffs have significantly impacted not only the DAX but also other international markets. The Nikkei in Tokyo and the Hang Seng in Hong Kong also reported significant losses.
- Reactions from Other Countries: China has announced retaliatory tariffs of 34 percent on US goods in response to the US tariffs, further escalating tensions.
Possible Developments in the New Week
- Central Bank Decisions: Hopes for new impulses from central bank decisions, especially on Tuesday, could influence trading. However, the US Federal Reserve has signaled it will wait, increasing uncertainty.
- Geopolitical Tensions: Geopolitical tensions, especially between the US and China, remain a central issue. Investors are closely monitoring developments as they could have significant impacts on the markets.
- Reactions from the EU: The EU is also closely monitoring the situation and emphasizes the need to avoid emotional responses and instead act wisely and prudently to avoid a trade war.
Recommendations for Investors
- Monitoring Developments: Investors should closely follow macroeconomic and geopolitical developments, as these can have significant impacts on the German stock market.
- Diversification: A diversified investment strategy can help minimize risks arising from such global events.
- Long-term Perspective: Despite short-term turbulence, investors should also consider long-term perspectives and not react excessively to daily fluctuations.