Germany’s equity index DAX experienced a significant decline on Monday, as stocks from various sectors faced sharp downturns due to selling pressure, exacerbated by escalating tensions between the U.S. and Europe regarding Greenland. Trump today reaffirmed his intention to acquire Greenland, asserting that NATO has cautioned Denmark for years regarding the “Russian threat” to Greenland and contending that Copenhagen has not taken adequate measures.
The announcement by the U.S. President regarding a 10% tariff on several EU countries, effective next month, which increases the overall tariff on imports to the U.S. to 25%, alongside reports of potential retaliatory measures from the EU, exerted downward pressure on stocks. The European Union is reportedly contemplating the imposition of tariffs amounting to 93 billion euros on goods from the United States or limiting access for US companies to its internal market. The DAX experienced a decline of 302.97 points, reflecting a decrease of 1.2%, settling at 24,973.31 recently.
- Equities from the automobile and technology sectors experienced significant declines.
- Defense stocks exhibited an increase in strength.
- BMW experienced a decline of 4.4%, while Porsche Automobil Holding decreased by 3.6%.
- Mercedes-Benz saw a reduction of approximately 3.4%, Volkswagen faced a drop of 3.1%, and Daimler Truck Holding fell by 2.5%.
- Among the other significant underperformers were Siemens Healthineers, Commerzbank, Adidas, Deutsche Bank, Infineon Technologies, SAP, Qiagen, and Deutsche Post.
Bayer experienced an increase of over 6% following the US Supreme Court’s decision to review the ‘Durnell’ glyphosate case. The court has consented to examine Bayer’s appeal regarding a $1.25 million jury verdict from Missouri, which asserts that the German firm neglected to inform consumers about the potential cancer risks associated with Roundup. Rheinmetall experienced an increase of nearly 3%, whereas Deutsche Telekom, E.ON, and Hannover Rueck recorded modest gains.