Current Stock Market Crash in Frankfurt: DAX Experiences Dramatic Drop
On Monday, the DAX experienced a massive drop attributed to aggressive US tariff policy. This development has dramatically intensified the selling wave in the German stock market, wiping out nearly all the gains made since the beginning of the year.
Background: US Tariff Policy and Trade War
The recent measures taken by US President Donald Trump, who has imposed new tariffs on imports from nearly all countries, have triggered a global reaction. China has announced extensive counter-tariffs set to take effect on April 10. This escalation has marked the beginning of a new trade war, leading to significant concerns about a global recession.
Impact on the DAX
On Monday morning, the DAX lost a massive 9.16 percent, standing at 18,751.75 points. Throughout the day, a decline of around 10 percent was recorded, resulting in a drop to 18,489.91 points. This development marks the third consecutive day of losses and nearly erases the gains made since the beginning of the year.
Global Market Reactions
The effects of 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 plunged, with the Nikkei 225 declining by almost 9 percent. These global market reactions reflect widespread concerns about 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 Chair Jerome Powell has also expressed concerns about the economic impacts of the tariff policy.
Conclusion
The current crash of the DAX is a sign of the ongoing uncertainty in global markets, exacerbated by aggressive US tariff policy. The implications for the German economy are significant, as Germany heavily relies on exports, and the tariffs could impact the sale of German products abroad. The future of the DAX is heavily dependent on the development of the trade conflict between the US and other countries.