Dax the crash! Panic investor because of Trump's customs war!

Dax the crash! Panic investor because of Trump's customs war!

Frankfurt, Deutschland - The DAX has shown itself extremely volatile today and has fallen strongly again. On the daily low, the index noted at 19,421 points, which corresponds to a minus of 4.2 percent. With this decline, the DAX lost all price gains from the previous day and is therefore under great pressure. The VDAX volatility barometer rose by 15 percent, while the VIX, the counterpart for the US index S&P 500, closed at 52 points. The DAX has already lost 17 percent since its record high of 23,476 points, and the risk of a bear market, defined as a loss of at least 20 percent, continues to threaten. On Monday, the index was even short -term under this critical value, which reinforced the uncertainty in the markets.

like Tagesschau.de , the decline of the Dax announcement of new US-Zölle on products from China is also caused. President Trump reacted to Beijing's counter tariffs of 34 percent. These customs measures not only affected the DAX, but also led to burglaries in the markets worldwide, including in Dow Jones, which has currently lost 16 percent. The US futures for Dow Jones and Nasdaq 100 are clearly in the minus, while the fear of global recession puts oil prices under pressure. The North Sea variety Brent took over 3.7 percent to $ 60.51 per barrel, while gold increase by 2.2 percent to $ 3,042 per troy ounce.

market faults and their causes

The Dax initially even fell by about 10 percent in the early day, but later recovered to a minus of 4.13 percent at 19,789.62 points. The decline is a reaction to the tense trade policy of the US government, which, despite Trump's willingness to talk, records the high customs policy. Analysts assume that Trump could possibly give in, since stock property is widespread in the United States and investors react unsettled. The EuroStoxx lost 50 4.6 percent on the European market, while the MDAX fell by 3.02 percent. A particularly weak value in the DAX was Hannover Rück, who gave up 7.5 percent.

The latest developments show how quickly the market conditions can change. In the morning there was an interim recovery to almost 20,800 points before a falconer turned the markets back to falter over a possible customs break. This uncertainties provide investors and let them doubt the stability of the markets. ZDF described the Monday as "wild roller coaster ride", which aptly describes the nervousness of the investors.

bear market and its characteristics

A bear market, as he is currently threatening at the DAX, is characterized by a decline of at least 20 percent in a wide market index and can last for months to years. These markets often arise due to economic recessions, interest rate increases and political crises. In today's situation, investors' trust is severely affected by the geopolitical tensions and upcoming customs increases. Finanziero.de explains that in bear markets there is often a shift in secer systems, while the risk of liquidity bottlenecks increases.

In order to navigate in a bear market, investors should consider strategies such as diversification, securing liquidity and long -term thinking. In this challenging market situation, it is crucial to keep calm and remain informed so as not to act rash. The focus on healthy investment strategies and avoiding panic sales are essential.