The start of the week into the new trading week begins turbulently, like how the previous trading week ended. The Asian markets collapse dramatically and the DAX falls below 20,000 points for the first time in pre-market trading. Investors seem to have panicked and are fleeing the stocks. The result is very strong sell-offs, which cannot be absorbed to the same extent by the demand for shares, and there are currently erratic movements on the financial market. At the moment, it is not foreseeable how long these strong sell-offs will last. In the DAX, it will definitely be interesting to see whether investors will succeed in surpassing the critical mark by 20,000 points again or whether the supposedly free fall will continue.
It should also be interesting for investors that the DAX is likely to move below the much-watched 200-day average line and thus possibly trigger further sell-offs. The problem is that no signs of retreat are being sent from the USA, but the escalation spiral is increasingly accelerating. The world does not see the decisions of the US government as an offer to negotiate, but as a threat to the global economy. The expected measures of mutual tariff increases could lead to a global recession.
Worst trading days since the pandemic in the FTSE 100
The British stock markets are also currently going down vertically. Although Great Britain is not affected to the same extent by the tariff increases, the stock market cannot escape the general flight from equities either. The market has also already fallen below the 200-day moving average on Friday and investors are waiting for a breather in the form of a short-term increase. For the FTSE 100, these are the worst trading days since the pandemic. The index has fallen by more than 11% in a few trading days.
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