FRANKFURT (dpa-AFX) – Fears of an escalating trade conflict triggered a price slide on the German stock market on Monday. The leading Dax index fell by 1.40 percent to 21,428.24 points, abruptly halting its recent record rally, which had peaked at just over 21,800 points on Friday. The MDax mid-cap index fell by 1.28 percent to 26,388.15 points.
US President Donald Trump made good on his threat at the weekend and imposed far-reaching tariffs on goods from Canada, Mexico and China. “Many market participants had hoped that Trump would show some insight and have now been bitterly disappointed,” said market observer Christian Henke from trading house IG. According to observers, there is now concern on the financial markets that the tariffs will once again fuel inflation in the US and dash hopes of lowering interest rates. Trump’s next target could be the European Union, for which he threatened tariffs “pretty soon”.
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