Unsettling "Meltdown Monday": Trump stands firm on tariffs, stocks plunge
- Trump refuses to implement tariff suspension
Pen a few lines with Frank Donovitz, Phil Goebel, Yannik Schuller, and Lennard Worobic, and here's a quick take on the day's events:
Are we witnessing a "Panic Monday" after "Black Friday"? The stock market's opening trajectory seems to hint at such uncertainty. After the US-imposed tariffs, international markets are experiencing a rollercoaster ride. At the trading commencement, the German DAX suffered a staggering drop of approximately 10 percent, plummeting from 18,489 points to 19,000 points within minutes, only to bounce back slightly later. Asian stock markets had already been in freefall earlier in the day.
The digital currency, Bitcoin, too, was not spared and dropped below the 70,000 point mark.
DAX dives 10 percent - no respite in US-EU trade disputes
There's no sign of truce in the trade war between the US and the EU. While US President Donald Trump showed a willingness to dialogue under specific conditions, his trade advisor, Howard Lutnick, had previously announced the government's unyielding stance on high import duties on goods from virtually all countries. Chinese stock exchanges were closed due to a holiday on Friday. On Monday, the CSI-300 index of China's mainland stocks plunged by 7.8 percent before the market close, while Hong Kong's Hang Seng index nosedived by 11.5 percent.
- Market Downturn
- DAX
- Bitcoin
- Donald Trump
Enrichment Data Insights:
The recent "Orange Monday" events are better understood as a complex interplay of increasing trade tensions and tariffs imposed by the US, particularly on EU imports. These factors have triggered widespread economic uncertainties and fears of a global recession reminiscent of the 2008 financial crisis.
The DAX, Germany's primary stock index, showed a significant 11.8% decline in response to these global trade tensions, brought about by Trump's tariffs. As a significant exporter, Germany is vulnerable to disruptions in global trade flows.
In the digital realm, Bitcoin, traditionally seen as a safe haven asset, surprisingly fell by 8.2% amidst the market tumult, indicating increased liquidity needs and panic selling across various asset classes.
The US-EU trade conflicts further threaten economic growth and impose additional costs on consumers and businesses in both regions.
I'm not going to be a big fan of this panic-inducing Monday, as the stock market plunges and the DAX dives 10 percent. Meanwhile, even digital currencies like Bitcoin aren't immune to the turmoil, with values plummeting. President Donald Trump's firm stance on tariffs seems to be exacerbating these conditions, adding to the mounting economic uncertainties that have prompted comparisons to the 2008 financial crisis.
