Merkel’s HELL: German stocks slide as Trump’s war HAMMERS Deutsche Bank, BMW & Volkswagen | City & Business | Finance



Germany’s DAX index shed 0.8 percent over fears its leading firms will be caught up in the tit-for-tat trade tariff battle between the European Union and US.

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BMW Volkswagen and Daimler, the owner of Mercedes, both dipped.

DAX, Germany’s leading index, shed 12.135 points this morning falling to its lowest point since early April.

Deutsche Bank’s demise continues with shares dropping to a new all time low of €8.76 euros, its previous low of €8.83 euros came on 30 September 2016.

Helaba analyst Christian Schmidt told Handlesblatt: “The nature of the stress factors has changed little, the threat of a trade war continues to hang above the market like a Damocles sword.”

Germany’s top firms are some of the most exposed to a potential chaos caused by a trade war with metal exports punished by President Trump’s tariffs and its car industry – some of which is based in the US – now struggling with increased tariffs to goods heading into China.

JP Morgan equity strategist Mislav Matejka said: “Associated risk as investors have grown more risk-averse with the increasing tensions over trade.”

President Trump began his attack on the European car industry the day after European Union reprisals took effect against US tariffs on European steel and aluminium.

The EU targeted $3.2 billion in American goods exported to the 28-member bloc, including bourbon and Harley Davidsons.

Europe has given its clearest signal yet that it will hit back if US President Donald Trump follows through with a threat to slap import tariffs on European-made cars.

France’s finance minister Bruno Le Maire said: “If the United States hits us again with a 20 percent increase on cars we will respond again. We don’t want an escalation, but we are the ones being attacked.”

Yesterday, President Trump took to Twitter to reaffirm his case for action against European cars. He said: “We are finishing our study of Tariffs on cars from the E.U. in that they have long taken advantage of the U.S. in the form of Trade Barriers and Tariffs.

“In the end it will all even out – and it won’t take very long!”

Additional reporting from Monika Pallenberg


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