Current Stock Market Crash in Frankfurt: DAX Experiences Dramatic Decline
On Monday, the DAX experienced a massive drop, attributed to the aggressive US tariff policy. This development dramatically intensified the sell-off wave in the German stock market, resulting in a near-complete loss of gains since the beginning of the year.
Background: US Tariff Policy and Trade War
The recent measures taken by US President Donald Trump, who imposed new tariffs on imports from nearly all countries, have triggered a global reaction. China has announced extensive retaliatory tariffs that are set to take effect on April 10. This escalation has sparked a new trade war, raising significant fears of a global recession.
Impact on the DAX
The DAX lost a massive 9.16 percent on Monday morning, standing at 18,751.75 points. Throughout the day, a decrease of around 10 percent was recorded, bringing it down to 18,489.91 points. This marks the third consecutive loss day, nearly erasing all gains since the beginning of the year.
Global Market Reactions
The effects of the US tariff policy are not limited to Germany. Other European markets, such as the pan-European STOXX 600, have also suffered significant losses. In Asia, markets have also seen sharp declines, with the Nikkei 225 dropping by almost 9 percent. These global market reactions reflect widespread concerns over a recession and rising inflation.
Expert Opinions and Forecasts
Financial market experts warn of ongoing uncertainty in the markets. Analysts like Christian Henke and Jim Cramer emphasize the risks of a global trade war and the possibility of a “Black Monday” scenario, similar to the historical crash of 1987. US Federal Reserve Chairman Jerome Powell has also expressed concerns about the economic impacts of the tariff policy.
Conclusion
The current DAX crash is a sign of the continuing uncertainty in global markets, exacerbated by the aggressive US tariff policy. The impacts on the German economy are substantial, as Germany heavily relies on exports, and tariffs could hinder the sales of German products abroad. The future of the DAX heavily depends on the developments in the trade conflict between the US and other countries.