Background and Causes
US Tariff Policy: The USA has implemented a series of tariffs that have led to an escalation of trade wars. These measures have resulted in a deterioration of trade relations globally and an increase in uncertainty.
Global Trade Tensions: Trade tensions between the USA and other countries, particularly China, have intensified. This has led to a decline in confidence in the global economy and increased risk appetite among investors.
Market Reactions
DAX Crash: The DAX, Germany’s leading index, fell by 7.2% on April 7, 2025. This crash is indicative of strong uncertainty and distrust among investors regarding the current economic situation.
Other European Markets: Other European markets have also suffered significant losses. The British FTSE 100 fell by 4.83%, while the French CAC 40 decreased by 6.14%.
Loss of Gains in 2023: The previous gains of 2023 have abruptly vanished, indicating a sudden deterioration in economic prospects.
Impact on Investors
Investor Risk: The sudden worsening of market conditions has significantly increased risk for investors. Many investors are forced to reconsider their positions and may make adjustments to minimize losses.
Economic Uncertainty: The growing uncertainty in the global economy could lead to a further decrease in investments, which in turn could impair economic development in Germany and worldwide.
Forecasts and Possible Developments
Recession Risk: The heightened trade tensions and market volatility have increased the risk of a recession. This could lead to a further deterioration of economic conditions.
Further Measures: It remains to be seen whether additional political measures will be implemented to stabilize the situation. A resolution of trade conflicts could help restore investor confidence and calm the markets.