Tariff Shock from Washington: DAX Slides Below the 25,000 Mark
The start of the trading week on the Frankfurt floor did not go according to plan. The DAX opened with a significant downward gap, reacting to the latest grim news from the United States. US President Donald Trump’s unyielding stance in the Greenland conflict is causing massive uncertainty: the announcement of 10% punitive tariffs on European imports starting in February caught investors off guard. In an initial shock reaction, numerous positions were liquidated, pushing the index down 1.34% on Monday. With a closing price of 24,959 points, the market barometer slipped below the psychologically critical 25,000-point threshold just as the week began.
Davos as a Last Resort? Focus on Damage Control
The World Economic Forum in Davos, which launched yesterday under the theme "A Spirit of Dialogue," seems to have arrived at exactly the right time. Top European politicians are using the stage to try and de-escalate the situation and avert a looming trade war. However, skepticism remains high: market observers doubt whether the US President can be swayed from his tariff plans through diplomatic efforts. Currently, the discussions behind the scenes in Davos seem primarily focused on damage control, as the US has made the Greenland deal a precondition for stable trade relations.
Stocks in Focus: Brenntag Struggles, ZEW Index in Sight
On the DAX leaderboard, the chemical distribution sector was hit particularly hard on Monday: Brenntag AG shares were the day's biggest loser, dropping 3.0%. The real estate portal Scout24 also couldn't escape the downward pull, closing 2.7% lower.
Looking ahead to Tuesday, new impulses are expected from fundamental data. At 11:00 AM CET, the ZEW Index will be released. This key economic indicator will reveal whether investors still believe in a German economic recovery despite the tariff threats (Forecast: 50.0 points). Things will also get interesting in the afternoon when US markets resume trading following yesterday’s holiday (Martin Luther King Jr. Day). Expect significantly increased volatility that could shake the DAX once again.
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