German Stocks Crash Near 1-Year Lows On Trade Fears

Having soared 34% from the pre-Trump-election lows, the German stock market has tumbled 13% in the last few weeks, crashing almost 6% this week as fears of a global trade-war slam the export-driven economy's stock market.

As Bloomberg notes, "the threat of a trade war was always likely to hit the export driven German economy hardest."

This is the lowest for DAX since Aug 29th, and is back at the same level as January 27th...

And while DAX is worst, the rest of Europe's majors have tumbled...

 

Get back to work Mr.Draghi...

Comments

107cicero Fri, 03/02/2018 - 10:46 Permalink

Germany never needed the Second World War to dominate Europe.  Just add a few  economic cripples, like Greece, Italy and Spain to the currency and you can export much more than if it was still the Deutschmark.

 

Trump is doing the right thing in the long run, economists be damned!!

Endgame Napoleon 107cicero Fri, 03/02/2018 - 11:03 Permalink

If we do not get more breadwinner jobs back in the USA, the Germans can add the debt-laden US to its list of beggars. I love the artistic traditions of quite a few of these European countries, but they treat America like a red-headed stepchild, as we say in the South. I don’t know how pleasant it would be for so-called “ugly Americans” to beg these haughty, European nations for money due to letting them set tariff policy, while letting the non-diverse populations of Asia dominate the jobs that American-in-name-only-companies create in manufacturing.

We are already seeing mayhem in the streets of underemployed American cities from pursuing those America-last policies for decades. Set aside the issue that, due to automation and impending lights-out manufacturing, it is almost too late to change our path, whereas generations of Germans have benefited from their country unapologetically putting Germany First.

In reply to by 107cicero

resistedliving 107cicero Fri, 03/02/2018 - 11:07 Permalink

Putting your lead aside, Trump is doing the right thing in the long run

Not one word on MSM, even Bloomberg, about how it is impossible to sell

our cars abroad due to local import duties, tariffs, taxes, transfer of our technology,

let alone outright theft etc etc.  Completely unfair to our workers.  tRump took a sledgehammer when a baseball bat 

would do, i do fear his impolitic bludgeon will cause unnecessary harm, but agree in principle

Trump is doing the right thing in the long run

In reply to by 107cicero

OverTheHedge resistedliving Fri, 03/02/2018 - 11:32 Permalink

I'm sorry, but one of the main reasons US cars don't sell abroad is that US cars are not very good. It's ok - not everyone has to make Rolls Royce or Mercedes Benz, the market needs cheap, not very good cars too. Japan's astonishingly protectionist system doesn't help in their market, but there ought to be more American cars in Europe, except European cars go in straight lines AND around corners, which is handy if you live in the Alps.

My sister had a jeep once - flash 4x4 with all the toys - it got stuck in the yard, because it couldn't get over a little drain. Various random bits fell off constantly, the fuel tank split, and so after 6 months they gave it back. Bought a Landover, which is even more unreliable, but has a bit more caché in Surrey. 

In reply to by resistedliving

Dumpster Elite Fri, 03/02/2018 - 11:23 Permalink

Couldn't happen to a nicer bunch of skinny-jean wearing latte-sipping embarrassments to the German race. While we're at it, get our fucking military OUT of Germany, and Europe! Let them pay for their own defense! Why do I have to pay for their defense??? And then they tax the shit out of stuff I want to sell there, to boot!

gunzeon Fri, 03/02/2018 - 11:33 Permalink

Normally when one country colonizes another, as the US has Germany, they plunder, and bring back spoils. Doesn't seem to be happening in this case.

Yen Cross Fri, 03/02/2018 - 12:25 Permalink

  Huge miss on German retail sales, and French Spanish macro is starting to look crappy.

  Time to sell the euro again next week. Italian elections are priced in.

MaxDemon Fri, 03/02/2018 - 13:23 Permalink

How quickly we forget that the german courts just gutted the german auto industry by allowing banning of diesel engines.  Because of their all-powerful bureaucrats that is about all they make, so they are SOL.