Current Developments at the Frankfurt Stock Exchange: DAX in Free Fall
The DAX, Germany’s leading stock index, is experiencing a dramatic crisis. On Monday, April 7, 2025, trading began with significant losses, which slightly recovered throughout the day but still remained down by about 4.80% at 19,651.66 points. This development is part of a global market weakness triggered by escalating trade conflicts between the U.S. and other countries.
Causes of the DAX Crash
- U.S. Tariff Policy: Recent actions by the U.S. government, particularly the introduction of new tariffs, have led to significant market uncertainty. These measures hit Germany particularly hard, as the country is heavily dependent on exports and the U.S. markets are crucial for many German companies.
- Global Trade Conflicts: The reactions of other countries, such as China’s planned countermeasures set to take effect on April 10, are intensifying concerns about further escalation of the trade war. The EU may also be considering countermeasures, further increasing uncertainty.
Impact on Investors
- Private Investors and Savers: The current developments have direct impacts on the portfolios of private investors and savers. The loss of gains since the beginning of the year could lead to a reevaluation of their investment strategies.
- Investment Decisions: In this uncertain time, making investment decisions is particularly challenging. Many experts advise caution and warn against investing in declining markets, as this can lead to significant losses.
Technical Analysis and Market Environment
- Technical Indicators: The DAX has lost the important technical resistance at the 200-day moving average, indicating a potential further downward movement. A bounce back above the 21,000-point mark could signal a possible recovery, but this seems unlikely given the current market situation.
- Global Market Development: The global markets are in a phase of correction. Asian markets like the Hang Seng Index and the Nikkei 225 have suffered significant losses, reflecting global uncertainty.
Conclusion
The current situation at the Frankfurt Stock Exchange and the development of the DAX reflect the far-reaching impacts of global trade conflicts. For private investors and savers, it is important to adjust their investment strategies to the changing market conditions and be prepared for a possible further escalation of trade tensions.