FX.co ★ DAX Faces Renewed Pressure

On Monday, Frankfurt's DAX Index experienced a significant decline of over 10%, adding to last week's extensive selloff and lagging behind other European markets. This downturn was largely driven by the ongoing trade conflict initiated by U.S. President Donald Trump and China's response in the form of unexpectedly steep tariffs. Additionally, the European Union has pledged to implement its own countermeasures if talks with the United States do not succeed. This situation has raised concerns about a potential influx of Chinese exports to the EU at dumping prices, which could adversely impact Germany's industrial sector. Among the most affected sectors were industrials, banking, technology, automotive, and insurance. Notably, Rheinmetall, Germany's largest arms manufacturer and the fifth largest in Europe, saw its stock value plummet by over 25%.