DAX Stalls: Trump’s 145% Tariffs Trigger Global Selloff…again

Markets Sink as Trump’s 145% Tariffs on China Take Effect

Global markets plunged after U.S. President Donald Trump implemented a 145% tariff on all Chinese imports, escalating the U.S.-China trade war and shaking investor confidence. The move is being viewed as a $400 billion tax hike on U.S. consumers and businesses.

Tariffs Trigger Global Selloff

• Asian markets fell sharply: Nikkei -3.6%, Taiwan -4.6%, MSCI Asia-Pacific -1.9%.
• European indexes opened lower: DAX -2.5%, falling below its 200-day average.
• S&P 500 lost $5.8 trillion in value over four days, with futures pointing lower.
• Treasury yields surged—the biggest weekly jump since 2001—despite risk-off sentiment.

Dollar Crashes, Gold Soars

• Dollar Index (DXY) fell below 100 for the first time since 2023.
• Swiss franc hit a 10-year high; yen surged.
• Gold spiked to a record $3,206/oz, up 6% this week; analysts eye $3,500 next.
• Oil slid: Brent at $63.13, WTI at $60.11—both near four-year lows.

DAX Technical Analysis 4 H

The Germany 40 (DAX) CFD – 4H Chart continues to show signs of indecision just below the key resistance zone around 20,800, with price currently at 20,707.7, marking a -0.05% intraday decline. After the strong bounce from the 18,600–18,900 support zone, momentum has stalled near the declining 50 EMA and previous support-turned-resistance at 20,474–20,800.

 

🔍 Technical Outlook:

• Trend: Still bearish in the medium term, with all EMAs sloping downward.
• Price structure: A lower high appears to be forming, unless bulls can reclaim 21,000+ soon.
• EMA confluence (20, 50, 100, 200) continues to suppress price — notably:
• EMA 20 just overhead at ~20,707
• EMA 50 near 21,061 (not shown here but relevant)

 

📊 Indicators:

• RSI (4H): Hovering around 50 — neutral, but not signaling strong bullish momentum yet.
• Stochastic RSI: Turning downward after nearing overbought — early sign of potential short-term pullback.

📌 Key Levels:

Resistance:

• 🔴 20,800 – psychological & EMA cluster resistance
• 🔵 21,000–21,200 – deeper supply zone from early April

Support:

• 🔵 20,474 – former support zone now being tested again
• 🔵 20,193 / 20,039 – minor horizontal levels
• 🟢 18,928–18,586 – major structural support and previous bottom zone

 

⚠️ Summary:

The DAX has recovered impressively from its recent lows but is now struggling to build follow-through above resistance. Unless price clears 20,800+ with strong volume, the risk of another leg down remains. A break below 20,474 would confirm a lower high and may trigger renewed selling toward 19,800 or lower.

📉 Short-term bias: Neutral to bearish
📈 Bullish confirmation above 21,000+ with momentum.

 

Inflation Outlook Turns

March CPI showed cooling prices (2.4% YoY, core CPI 2.8%), but the new tariffs could add 0.8% to inflation, pushing the Fed into a corner. The Fed’s preferred PCE index is likely to climb, reigniting policy uncertainty.

 

China Retaliates, Economic Data Worsens

China responded with 34% tariffs on all U.S. goods, export bans, and tighter restrictions. Sectors hit hardest:

• Aviation (Boeing)
• Semiconductors (Intel, Micron)
• Agriculture (soy, poultry)

Deflation persists: CPI -0.1% YoY, PPI -2.5%, raising pressure for stimulus and rate cuts.

 

Corporate Impact: Tesla Halts Orders in China

Tesla suspended Model S and X orders in China, citing tariff uncertainty. CEO Elon Musk warned the company could face “significant disruption.”

 

EU Prepares Countermeasures

EU President von der Leyen signaled readiness to tax U.S. tech if talks fail. Options include:

• Reinstating steel/aluminum tariffs
• Digital taxes on firms like Google, Amazon, Meta
• LNG trade deals to offset U.S. leverage

 

Markets Eye Today’s Data and Earnings

At 14:30 MET:

• U.S. PPI (Mar) expected at +0.2% MoM

Earnings Today:

• JPMorgan, Wells Fargo, Morgan Stanley, BlackRock

 

Conclusion: Uncertainty Reigns

Trump’s tariff move has upended markets. With the dollar plunging, inflation risks rising, and China retaliating, recession fears are growing. Until clarity returns, volatility will dominate.