US Tariff Policies Drive Global Market Declines
DAX experiences significant losses amid ongoing trade tensions and market volatility.
The U.S. government's tariff policies have triggered a substantial downturn in global stock markets, with Germany's DAX index closing down once again, although losses were mitigated.
On April 7, 2025, the DAX index fell by 4.13% to 19,789.62 points, significantly recovering from an opening loss that exceeded 10%.
This marks the third consecutive trading day of substantial losses, erasing nearly 18% in gains accumulated since the beginning of the year.
Earlier in the day, the DAX briefly surged to nearly 20,800 points, buoyed by a media report suggesting a possible 90-day suspension of tariffs.
However, this optimism was short-lived as the White House quickly dismissed the report as false.
Despite President Donald Trump's indications of a willingness to engage in discussions with affected countries, the administration remains committed to its aggressive economic policies, including steep tariffs on imports from around the world.
In a related development, the European Union has offered the U.S. a proposal to mutually eliminate all tariffs on industrial goods.
EU Commission President Ursula von der Leyen reaffirmed Europe's readiness to negotiate, while highlighting ongoing preparations for countermeasures should talks fail.
Market analysts, including Mohit Kumar from Jefferies, express hopes that Trump may relent in the tariff dispute; this could allow him to present a resolution as a political victory.
The pressure to act is reportedly increasing, fueled by the widespread ownership of stocks among the American public and substantial holdings by various political representatives.
In the broader market, the MDAX, which includes mid-sized companies, also fell by 3.02%, settling at 24,640.54 points.
The Eurozone's leading index, the EuroStoxx 50, which had already erased its annual gains by Friday, posted a decline of 4.6%.
The downward trend was observed globally, with major indices in Asia also reporting sharp declines.
In the United States, further losses were noted, with the Dow Jones Industrial Average falling by 2.8% and the technology-heavy Nasdaq 100 decreasing by 1.7% by the close of European markets.
On April 7, 2025, the DAX index fell by 4.13% to 19,789.62 points, significantly recovering from an opening loss that exceeded 10%.
This marks the third consecutive trading day of substantial losses, erasing nearly 18% in gains accumulated since the beginning of the year.
Earlier in the day, the DAX briefly surged to nearly 20,800 points, buoyed by a media report suggesting a possible 90-day suspension of tariffs.
However, this optimism was short-lived as the White House quickly dismissed the report as false.
Despite President Donald Trump's indications of a willingness to engage in discussions with affected countries, the administration remains committed to its aggressive economic policies, including steep tariffs on imports from around the world.
In a related development, the European Union has offered the U.S. a proposal to mutually eliminate all tariffs on industrial goods.
EU Commission President Ursula von der Leyen reaffirmed Europe's readiness to negotiate, while highlighting ongoing preparations for countermeasures should talks fail.
Market analysts, including Mohit Kumar from Jefferies, express hopes that Trump may relent in the tariff dispute; this could allow him to present a resolution as a political victory.
The pressure to act is reportedly increasing, fueled by the widespread ownership of stocks among the American public and substantial holdings by various political representatives.
In the broader market, the MDAX, which includes mid-sized companies, also fell by 3.02%, settling at 24,640.54 points.
The Eurozone's leading index, the EuroStoxx 50, which had already erased its annual gains by Friday, posted a decline of 4.6%.
The downward trend was observed globally, with major indices in Asia also reporting sharp declines.
In the United States, further losses were noted, with the Dow Jones Industrial Average falling by 2.8% and the technology-heavy Nasdaq 100 decreasing by 1.7% by the close of European markets.
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