Unraveling the "Panic Monday" Chaos: Germany's Stock Market Plunge - Rheinmetall and Adidas Feel the Heat
- by Yanni the Bold
- and Phil the Thrill
- 1 Min of Breaking Market Chaos!
- Stock Market Collapse Affects Germany: Rheinmetall and Adidas Suffer Heaviest Losses
Are the shadows of "Black Monday" looming once more? The trading gauntlet on Monday thrust fear into investors' hearts, leading them to question whether a stock market apocalypse might be impending. As U.S. tariffs continue to wreak havoc on the global economy, international stock markets remain locked in a devastating nosedive. With the German stock index (DAX) diving around ten percent at the bell, over 2,100 points plummeting to 18,489, and a short-lived recovery at 19,000 points, it's a stark reminder of a market on edge. Earlier, Asian stock exchanges were reduced to rubble.
Crypto king Bitcoin didn't escape either, with drastic losses sending its value reeling below the 70,000-point milestone.
The Plummeting DAX - The Cold War of Tariffs Continues Unabated
The ongoing trade war between the U.S. and European Union isn't showing any signs of a de-escalation. Despite U.S. President Donald Trump hinting at diplomatic discussions, his trade enforcer, Howard Lutnick, made it clear that the U.S. government remains resolute, pushing ahead with steep import tariffs on goods from almost everywhere. Surprisingly, China's stock markets were closed on Friday due to a holiday. On Monday, the CSI-300 index of major Chinese mainland stocks fell 7.8 percent, while the Hong Kong special administrative region's Hang Seng index nose-dived by a grim 11.5 percent.
- Hefty Markets Maelstrom
- DAX's Dark Days
- Bitcoin's Bloodbath
Delving Deeper:
- Trump's "Liberation Day," introduced on April 2, 2025, featured sweeping tariffs affecting a vast portion of the U.S. economy, which ignited a trade war with countries like China[2][3].
- These tariffs created a massive sell-off in the global markets. China fired back with tariffs of its own, intensifying anxieties of an economic downturn and possible recession[2][5].
- European markets, especially Germany's DAX, suffered immense losses. The DAX dropped by over 10% initially on April 7, but managed a slight recovery afterwards[1][3]. Other European indices, like the CAC 40 and FTSE 100, were also hard hit[3].
- This market panic isn't just about the U.S.-EU trade spat but reflects a much broader concern over global trading disorder, economic instability, and the specter of a recession[4][5].
- The following are the main factors contributing to the recent market chaos: the ongoing trade war between the U.S. and EU, Trump's "Liberation Day" with its wide-ranging tariffs, and the subsequent sell-off in global markets.
- Friday's unfounded absence of China's stock markets, combined with the U.S.'s relentless tariffs, served as a barometer for the liveblog of the devastating impact on the international market, as exemplified by the plunge in the DAX on Monday.
- Despite Bitcoin's previous resistance, it was not immune to the effects of the global market maelstrom, thereby experiencing a significant drop in value on Monday, dipping below the 70,000-point milestone.
