The Dax recorded a significant decline of about 0.9 percent to around 24,027 points on Monday. This correction was primarily triggered by increased selling pressure due to the recent US tariff threat against the European Union.
Background of the Market Correction
US President Donald Trump announced that as of August 1, special tariffs of 30 percent would be imposed on imports from the EU and Mexico. This measure significantly escalates tensions in the trade dispute. In response, the European Commission announced that it would also impose counter-tariffs against the US at the beginning of August, further intensifying the situation. The Dax, which had previously reached a record high of over 24,369 points, now faced a significant correction.
Hopes from the US Earnings Season
Despite these pressures, there are also hopes for stability: Analysts expect that the upcoming US earnings season could yield strong quarterly results, potentially providing temporary relief for the Dax. Many US companies may present good performances despite the challenging tariff environment.
Overall, the situation remains tense: The increasing tariff pressure from the US has led to noticeable selling pressure in the German benchmark index, signaling uncertainties for the financial markets in Europe. The further development will heavily depend on how the trade dispute between the US and the EU unfolds in the coming weeks.