DAX Crash: Global Markets Plunge Amid Escalating US Trade War

DAX Crash: dpa-AFX stock market day at a glance: Downturn due to US trade war

GERMANY: – CONTINUED PRICE DROP – The panic reaction to the recent US tariff wave continues into the new week. For the first time since August 2024, the DAX Crash is expected to fall by 10%.slip below its 200-day moving average – and thus below an important technical chart level. Furthermore, it could fall below the 20,000-point mark for the first time since the beginning of January.

The interim annual gain of around 18 percent will likely be completely wiped out. This is certainly the indication of the DAX indicator from broker IG, which stood at 19,760 points just two hours before the start of trading – a loss of 4.3 percent compared to Friday’s Xetra close. This would mean that the DAX Crash has lost almost 12 percent in the three days since the announcement of the US tariff package. Globally, the stock market slide has also shown no signs of abating. In Asia, indices fell significantly – in some cases by double digits. Futures on US indices have also recently fallen sharply.

USA: – DEEP RED – The announcement of retaliatory tariffs on US imports by China has exacerbated the recent price slump on the New York Stock Exchange on Friday. The Dow Jones Industrialslumped by 5.50 percent to 38,314.86 points. The heavy losses were accompanied by far above-average trading volumes, which probably justify the term sell-off. The previous day, the world’s most well-known stock index had already fallen by 4 percent after US President Donald Trump announced extensive import tariffs. The Dow fell to its lowest level since the middle of last year on Friday.

With a weekly loss of more than 8 percent, it was the Dow’s worst trading week in years. The Nasdaq 100, dominated by large technology stocks, lost 6.07 percent to 17,397.70 points on Friday, falling to its lowest level since May 2024. The 2025 trading year has now seen a loss of more than 17 percent. The broad-based S&P 500slipped 5.97 percent to 5,074.08 points. The weekly loss was the largest since March 2020. ASIA: – FURTHER PRICE DROP – The trade war triggered by the US and associated fears of a severe economic downturn continued to weigh on Asian stock markets on Monday. In Tokyo, the Nikkei 225

slumped . Most recently, the index fell by 6.6 percent. Losses also occurred in Australia, India, and South Korea. In China, the decline was even greater than in other markets, after trading there and in Hong Kong were closed on Friday due to the holiday. The Hang Seng Indexof the Chinese special administrative region collapsed by almost eleven percent on Monday and the CSI-300 indexwith the most important Chinese mainland stocks lost a good six percent.

• DAX 20641.72 -4.95%
• XDAX 20363.10 -5.94%
• EuroSTOXX 50 4878.31 -4.60%
• Stoxx50 4226.43 -4.76%
• DJIA 38314.86 -5.50%
• S&P 500 5074.08 -5.98%
• NASDAQ 100 17397.70 -6.07%

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BONDS:

• Bund Future 128.42 -0.25%

CURRENCIES:

• Euro/USD 1.0963 -0.80%
• USD/Yen 147.02 0.65%
• Euro/Yen 161.19 -0.15%

BITCOIN:

• Bitcoin 77,129 -1.55%

(USD, Bitstamp)

CRUDE OIL:

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• WTI 60.45 -1.54 USD

Trade dispute with the USA: DAX Crash around 10 percent at the start of the week

The German stock market is following the selling spree on the Asian stock markets. The DAX Crash opens trading down ten percent.

The sell-off on the German stock market due to the aggressive US tariff policy accelerated on Monday. At the start of trading, the leading DAX index plummeted by around 10 percent – ​​most recently, it barely recovered, falling 7.34 percent to 19,127.01 points. “Nerves are currently on edge,” commented financial market expert Andreas Lipkow. The US trade war sparked massive economic concerns last week.

The DAX Crash is facing its third consecutive day of heavy losses. It also slipped below the 200-day moving average, which is crucial for the long-term trend, for the first time since August. The significant price gains since the beginning of the year are history. The MDAX, which represents mid-cap companies, fell another 6.95 percent to 23,643.16 points. The Eurozone’s leading index, the EuroStoxx, which had already lost its annual gains on Friday, lost 6.3 percent.

The DAX had already suffered significant losses in the two previous days, accumulating a weekly loss of more than eight percent. The stock market barometer thus recorded its largest weekly loss since the Russian invasion of Ukraine in spring 2022.

The stock market reaction is only logical. There are no signs of easing the tariff conflict between the US and the European Union . US President Donald Trump signaled a willingness to talk under certain conditions. However, his Secretary of Commerce, Howard Lutnick, had previously announced that the US government intends to pursue its tough stance of high import duties on goods from almost every country in the world. In Luxembourg, the trade ministers of the EU member states will begin deliberations this morning on what strategy could be used to persuade Trump to back down on the special tariffs.

The downward trend on stock markets continues worldwide: In Tokyo, the 225-stock Nikkei index closed down 7.83 percent at 31,136.58 points. In early trading, the Japanese benchmark index fell as much as 9 percent to 30,793 points, its lowest level since autumn 2023.

The stock exchanges in China were closed on Friday due to a public holiday. On Monday, the CSI 300 index, which includes the most important mainland Chinese stocks, plummeted by 7.8 percent shortly before the close of trading. The Hang Seng Index for the Chinese special administrative region of Hong Kong recently plummeted by 11.5 percent.

DAX Crash: Dax collapses at the opening and loses more than 2000 points

The German benchmark index is down up to ten percent at the start of trading. It has lost 3,900 points since the middle of last week – and has now entered a bear market.

Severe price losses amid extremely high trading volume: Panic is rife on the stock market. In early trading on Monday, the DAX collapsed. by more than ten percent. At the start of trading, the German leading index reached 18,490 points. It subsequently closed at 19,150 points, a loss of seven percent.

This means the DAX has fallen to its lowest level since mid-September. Since the announcement of the US tariff strategy last Wednesday, it has lost a peak of 3,900 points.

In mid-March, the DAX reached a new record high of 23,476 points. It is now down as much as 21 percent from that record high. By definition, it has entered a bear market. This occurs when an index loses at least 20 percent from a record or all-time high.

In recent months, the DAX had passed one thousand-point mark after another. Market observers had already pointed out that the index’s performance had become disconnected from fundamental data and the real economy. The new tariff reality is now causing a sharp global slump.

• In Asia, the indices lost another ten percent of their value on Monday.
• Futures in the US are once again pointing to a deep red opening on Wall Street.
• In France, Italy and Great Britain, the leading indices also fell by more than five percent.

At the same time, volatility indices are rising sharply on both sides of the Atlantic. They signal the degree of price fluctuations financial professionals expect in the short term. They are indirectly considered a measure of the prevailing pessimism.

Following the escalation of the trade conflict, fears of a global recession are spreading. Market participants are already worried about financial stability in light of the stock market developments. Prominent economists and even leading investors like Bill Ackman are publicly warning about the long-term consequences of current economic policies.

All 40 DAX stocks are in the red in the first hour of trading. Those that have driven the stock market rally in recent months are hit hardest.

Rheinmetall shares initially fell by 26 percent to €941, their lowest level since February. The daily loss then settled at 15 percent. The same applies to MTU. As well as the defense stocks Hensoldt and Renk, which reached the bottom of the small cap index MDax decorate.

Economically sensitive Dax stocks such as Airbus, Adidas and bank stocks are also at the bottom of the DAX. Automakers’ losses are comparatively small, dropping up to five percent. These stocks came under pressure after Trump had previously announced new auto tariffs.

The only Dax share that can escape the market movement is Qiagen The diagnostics group has started the current year better than expected and is raising its profit forecast for the full year. However, Qiagen shares have also fallen by more than 20 percent from their all-time high in mid-January.

Stock market turbulence: Trump’s tariffs cause DAX Crash

US President Donald Trump introduces tariffs on imports into the United States. Stocks are plummeting worldwide, and the German stock index, the DAX Crash, is also in free fall.

The stock markets’ downward trend of recent days accelerated at the start of the week. In Frankfurt am Main, Germany’s leading index, the DAX Crash, slipped to 18,489 points shortly after trading began on Monday, a loss of ten percent. The share price of the defense company Rheinmetall slumped to €933 before trading, almost 27 percent below Friday’s closing price.

Last week, Donald Trump imposed general tariffs of 10 percent on imports into the US . The tariffs are based on the trade deficits of individual countries or regions with the US – for example, Trump imposed a 20 percent surcharge on imports of goods from the EU. In addition, there are special levies, for example on beer and empty aluminum cans from Europe. Trump’s tariff announcement is sending the global economy reeling. The European Brewers of Europe association alone fears for around 100,000 jobs in the EU. In a statement, the association warns of “losers on both sides of the Atlantic in society and the economy.”

Fears of a global economic downturn caused stock markets around the world to collapse.

• USA: The US stock markets set the trend on Friday evening, even before the global stock market break over the weekend. The Dow Jones Industrial Average lost 5.5 percent, falling to 38,314.86 points. The tech-heavy Nasdaq fell 5.8 percent to 15,587.79 points, and the S&P 500 index lost 6.0 percent to 5,074.08 points. The Financial Times reported losses of around $5 trillion in the past few trading days.
• Japan: Japanese industry primarily exports cars and technology products to the United States. The Japanese economy is concerned about these exports. On Monday morning, the Nikkei index fell by 6.5 percent to 31,592 points. In early trading, it had even fallen as much as 9 percent to 30,793 points, its lowest level since fall 2023. Trading on the Tokyo Stock Exchange was temporarily suspended.
• China: The government of the People’s Republic imposed retaliatory tariffs of 34 percent, infuriating Trump. “THEY PLAYED IT WRONG,” the US president posted on his Truth Social platform . The escalation in the trade conflict was also evident on Monday on the stock exchanges in Shanghai and Hong Kong. The Shanghai Composite Index slipped about six percent to 3,138 points in midday trading. The Hong Kong Hang Seng Index plunged nearly ten percent to 20,625 points.

First countries give in, Trump ready for talks

Trump expressed his willingness to talk with trading partners about easing the new tariffs under certain conditions. “I want to resolve the deficit issue we have with China , the European Union, and other countries,” he said on a return flight from Florida to the U.S. capital, Washington . “If they want to talk about it, I’m open to discussions.” He spoke with many world leaders from Europe, Asia, and around the world over the weekend, Trump said. “They’re eager to make a deal.”

For example, the Indian government signaled that it did not intend to impose retaliatory tariffs. Taiwan’s President William Lai also announced that he would not impose punitive tariffs. He also announced investments by Taiwanese companies in the United States. Around a quarter of Taiwan’s exports go to the United States, and at the same time, the country, located off the coast of China, is dependent on U.S. security assistance should China decide to attack the island nation, which Beijing considers a Chinese province.

Consultations of EU trade ministers

EU trade ministers met in Luxembourg on Monday to discuss the next steps. This meeting will also address precautions in the event that negotiations with the US government on a mutually acceptable solution fail. Preparations for counter-tariffs and other possible retaliatory measures are planned.

The EU Commission published a 99-page list of goods and products from the US that are subject to punitive tariffs. “The gun is on the table,” said Bernd Lange, the SPD MEP from Lower Saxony who chairs the European Parliament’s Trade Committee. Special levies, such as a digital tax for US tech companies like Meta and Google in Europe, are also being discussed. “Trump only understands strength,” said Green Party leader Franziska Brantner on ARD , calling for decisive action.

Conclusion

The US tariffs are hitting not only Germany’s economy at a difficult time. The German Trade Association (BGA) calls it a “frontal assault on global trade.” German Ambassador to Great Britain Miguel Berger told Sky News: “This is the biggest attack on global trade we have seen since the end of World War II.”

Germany’s exports are already weakening. Last year, the German economy’s exports of goods fell by one percent, and an even sharper decline is expected this year. January saw a decline of 2.5 percent compared to December. The Federal Statistical Office is releasing figures for February today.

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Sources used:

• With material from the News agencies AFP, Reuters news agency, dpa. With information from News Channels. Statement and reports from reputable news sources, including Reuters, Wikipedia, BBC, CNN. The content has been independently analyzed and rewritten to provide original insights.

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