German equities experienced a significant decline on Monday morning, adversely affected by global market instability following the imposition of punitive tariffs by the Trump administration. These tariffs target Canada, Mexico, and China, with additional threats to impose duties on the European Union and the United Kingdom.
The United States enacted a 25% tariff on Canadian and Mexican imports commencing Saturday, February 1. Canadian energy products and certain Chinese imports face a 10% tariff, effective Wednesday, February 5.
The DAX index, a primary benchmark for German stocks, plummeted to 21,258.00 and was recently observed to have fallen by 381.69 points, or 1.76%, settling at 21,329.74.
Notable declines in the automotive sector include Daimler Truck Holding, which has dropped 6.2%, with Volkswagen following at a 5.6% decrease. Other auto industry giants such as Mercedes-Benz, Continental, BMW, and Porsche each observed decreases ranging from 4% to 4.5%.
Additional declines affect companies such as BASF, Siemens Energy, Puma, Deutsche Boerse, Infineon, Siemens, Bayer, Zalando, Deutsche Bank, Brenntag, SAP, Adidas, Commerzbank, Siemens Healthineers, and Sartorius, with reductions between 1.5% and 4%.
Contrary to this trend, Rheinmetall posted a gain, rising over 2.5%, while Deutsche Telekom also showed upward movement, advancing close to 1%.
According to S&P Global data, Germany's manufacturing Purchasing Managers' Index (PMI) increased to 45 points in January after recording 42.50 points in December 2024.
Investors are anticipating the release of key economic data later in the day, including the Eurozone's manufacturing PMI and the preliminary Consumer Price Index (CPI).
