DAX slides 2% as US trade wars scare markets

Friday, 31. May 2019 13:16

Stocks sold off on Friday in Europe following a decision by United States President Donald Trump to introduce and gradually increase tariffs on Mexican imports if the bilateral dispute about illegal immigration isn't solved. Traders fled to the relative safety of benchmark government bonds, which sent yields to new lows, while the Japanese yen also benefited in risk aversion, underpinned by the existing trade war with China.

The benchmark German index dropped 1.77% at 1:15 pm CET to 11,691.52, after touching 11,662.07 points for the first time since April 2. Wirecard stayed at the bottom of the pile, bleeding 10.37%. The automotive sector followed and Volkswagen fell the most, 4.12%. Carmakers, already suffering in a wide pullback in manufacturing, would be especially hit by the new measures.

The FTSE 100 was 1.03% lower in London, at 7,143.7 points, compared to the session low of 7,130.85, unseen since March 11. The French CAC 40 lost 1.56% to 5,167.05 points after dipping to 5,160.91, the weakest mark since February 20. The Italian FTSE MIB tumbled 1.53% 19,642.37. Today it dropped to as low as 19,535.5 points, the lowest level since February 11.

Related Links: Volkswagen AGWirecard AG
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