FX.co ★ DAX Extends Heavy Losses

In Frankfurt, the DAX index experienced a significant drop, declining over 3.5% to approximately 19,500 on Wednesday afternoon. This slump came in the wake of China's announcement imposing an 84% tariff on US goods, which deepened the ongoing trade conflict with President Donald Trump and amplified selling pressure in the markets. Investors were already digesting the impact of reciprocal US tariffs, including a new 20% duty on imports from the European Union, which became effective today. Meanwhile, EU member states are poised to enact their initial countermeasures in response to US tariff impositions. Market confidence was further unsettled by President Trump’s remarks about a looming 'major tariff on pharmaceuticals,' indicating the possibility of the trade discord extending into additional sectors. Domestically, a coalition agreement has been struck between the CDU/CSU bloc and the SPD following prolonged negotiations, with detailed information expected to be released later today. In terms of corporate performance, most sectors recorded losses, with notable declines in pharmaceutical stocks, insurers, technology, and defense companies.