Stock of Dax company plummets as gas and oil prices persistently decline
In the financial world, the impact of US trade protectionism on European markets has been a topic of interest. While no direct statement from market analyst Andreas Lipkow was found regarding the specific effect on the DAX 40, recent research suggests a tangible but moderate downward pressure.
The Dax 40, a blue-chip index representing Germany's largest and most influential companies, saw a 2.7% decline, closing at 23,426 points on Friday. Daimler Truck's shares took the last place in the index, while only Bayer, Eon, and Deutsche Börse recorded gains until shortly before the close of trading.
The European automotive sector, crucial for indices like the DAX 40, is particularly exposed and expected to remain under pressure due to tariffs remaining significantly above pre-tariff levels. This could negatively impact relevant industry stocks, according to the Institute of Capital Market Analysts and Management (ICGAM).
The overall impact on EU GDP is projected to be relatively small, with a potential fall of 0.2% to 0.8%. However, countries with strong export ties to the US, such as Germany, are disproportionately affected. The European Common Currency (EUR) strengthened, with one euro costing 1.1537 US dollars, an increase of 1.05%.
The imposition of higher US tariffs on EU exports has led to a modest slowdown in euro area economic growth, with GDP growth forecasted to decelerate further in the second half of 2025, according to J.P. Morgan Global Research. Tariff-induced increased costs, potential supply chain disruptions, and altered global value chains may pressure European firms and influence investor sentiment in stock markets, including indices like the DAX 40, as suggested by Intereconomics.
Andreas Lipkow also mentioned that the impact of US trade protectionism on the US economy is yet to be seen. He emphasised that cyclical and heavily export-dependent sectors continue to be avoided in the Dax 40, and there were no signs of panic or tense situations on the European stock markets.
In conclusion, while the direct impact of US trade protectionism on the DAX 40 remains to be seen through Andreas Lipkow's perspective, research indicates a moderate downward pressure on European stock markets, with specific negative effects on sectors heavily represented in the DAX 40, such as automotive and industrial manufacturing.
The European automotive industry, represented by stocks in the DAX 40, is anticipated to experience negative effects due to the persistence of tariffs, according to the Institute of Capital Market Analysts and Management (ICGAM). Additionally, the finance sector could be influenced by increased costs and potential supply chain disruptions as a result of tariff-induced changes in global value chains, as suggested by Intereconomics.
