FX.co ★ DAX Sees Heavy Losses, Poised for 8% Decline

On Friday, Frankfurt's DAX index saw its most significant drop since February 2022, plummeting more than 5% as escalating trade war tensions provoked investor anxiety regarding potential repercussions on global economic growth. In a retaliatory move against widespread tariffs set by President Trump, China declared its intention to enforce 34% tariffs on all U.S. imports starting April 10. Concurrently, the European Commission revealed plans to ready its own set of countermeasures. President Trump's recent policy includes implementing a 10% tariff on all imports, with notably higher rates for certain regions, such as a 20% tariff on goods from the European Union. This situation placed most sectors under duress, with banks particularly affected as Deutsche Bank and Commerzbank saw declines of 10.2% and 8.7%, respectively. Significant losses were recorded in tech firms, basic resources, retail, and automotive sectors. In contrast, defensive sectors like real estate, and food and beverages, experienced gains. The index was poised for a weekly drop of approximately 8.2%.