The Frankfurt Stock Exchange experienced significant losses at the start of trading on Thursday, April 3, 2025. Around 9:45 AM, the DAX index was calculated at approximately 22,045 points, reflecting a decrease of 1.6 percent compared to the previous day's close. This downturn was particularly alarming for investors, as the market reacted sharply to a recent tariff announcement made by US President Donald Trump.
At the top of the DAX leaderboard were Vonovia, Eon, and Daimler Truck, while Adidas, Commerzbank, and Deutsche Bank found themselves at the bottom. The announcement of new tariffs by Trump has sent shockwaves through the financial world. Thomas Altmann from QC Partners stated, "Donald Trump is changing the world of trade. On the US Day of Liberation, not much remains of free trade." This sentiment reflects a growing concern that the tariffs imposed have exceeded both expectations and fears, pushing the global economy closer to the brink of recession.
Altmann further warned that many countries could face economic downturns solely due to these new trade restrictions, indicating that what began as a simple trade conflict has escalated into a global trade war with the latest US measures. "The 22,000-point mark is back in focus for the DAX," he noted, highlighting how the brief drop below this threshold on Monday had prompted many bargain hunters to make purchases. However, he cautioned that the threshold at which buyers enter the market may now gradually shift downwards.
On the same day, the European common currency showed signs of strength, with one euro costing 1.0969 US dollars, marking a 1.30 percent increase. Conversely, the oil price saw a notable decline, with a barrel of North Sea Brent costing 72.46 US dollars around 9 AM German time, down 3.3 percent from the previous trading day's close.
In contrast to the dismal performance of the German indices, the US stock markets appeared more optimistic on the same day. The DAX recorded a decline of 0.72 percent, settling at 22,338.22 points. The MDAX and SDAX indices also faced losses of 0.63 percent and 0.67 percent, respectively, trading at 27,466.67 points and 15,283.86 points. Meanwhile, the TecDAX followed suit with a decrease of 0.63 percent, landing at 3,609.51 points.
In the United States, the Dow Jones index managed a slight gain of 0.14 percent, reaching 41,998.90 points, while the S&P 500 also recorded a modest increase of 0.15 percent, standing at 5,636.11 points. This divergence in market performance reflects the varying sentiments on both sides of the Atlantic, with US markets currently adopting a more positive outlook compared to their German counterparts.
Within the DAX, Zalando emerged as a standout performer, boasting an increase of 3.48 percent, followed by Airbus at 3.24 percent and Heidelberg Materials, which gained 2.30 percent. On the other hand, the DHL Group experienced a decline of 1.58 percent, while Rheinmetall and Bayer faced even steeper losses, dropping 3.73 percent and 4.26 percent, respectively.
The MDAX saw Nordex shine with a 3.47 percent increase, trailed by Bechtle at 1.92 percent and HelloFresh at 1.86 percent. Conversely, Aroundtown led the MDAX losers with a 3.33 percent decline, followed by Wacker Chemie and Carl Zeiss Meditec, which fell by 3.91 percent and 5.36 percent, respectively.
In the SDAX, CANCOM SE topped the list with a 3.40 percent increase, while Wuestenrot & Wuerttembergische and HYPOPORT gained 3.16 percent and 2.02 percent, respectively. However, Kloeckner led the SDAX declines with a staggering 4.94 percent drop, followed closely by Energiekontor and NORMA Group, which fell by 6.06 percent and 7.73 percent.
In the TecDAX, both Nordex and CANCOM SE led the pack with increases of 3.47 percent and 3.40 percent, respectively, while Bechtle added 1.92 percent to its value. On the downside, Elmos Semiconductor and Evotec saw declines of 1.85 percent and 2.94 percent, with Carl Zeiss Meditec matching the latter's 5.36 percent decrease.
Turning to the Dow Jones, Goldman Sachs Group distinguished itself with a gain of 2.47 percent, followed by Johnson & Johnson at 1.62 percent and American Express, which rose 1.36 percent. In contrast, the Dow's laggards included Travelers Companies, Verizon Communications, and Chevron Corporation, which fell by 0.43 percent, 0.66 percent, and 0.79 percent, respectively.
The S&P 500 saw Moderna take the lead with a remarkable 4.86 percent increase, followed closely by Caesars Entertainment's 4.47 percent gain and Leidos Holdings, which rose by 3.99 percent. However, the largest losses in the S&P 500 were recorded by Deere at -1.24 percent, MarketAxess Holdings at -1.25 percent, and Progressive at -1.37 percent.
As the trading day concluded, the DAX had a fluctuation range of 346.14 points, significantly higher than its average of around 110 points, indicating heightened volatility in the market. The total trading volume also saw a notable decline, with 60,606,425 shares exchanged among DAX companies, which is 33.50 percent lower than the monthly average of 91,133,903 shares.
In summary, the market developments on April 3, 2025, paint a picture of uncertainty and volatility, driven largely by external factors such as US trade policies. Investors are left to navigate a complex landscape as they weigh the implications of these changes on both domestic and global markets.
