European stock markets plunge: DAX drops 10%, defense sector deep in the red
European stock markets began the week with a sharp decline amid the ongoing trade war between the U.S. and China. Investors are actively selling shares in industrial and defense sectors.
On the morning of Monday, April 7, European stock markets opened with a steep drop, according to Interfax-Ukraine.
Immediately after trading began, the German DAX index plummeted by 10%, marking the sharpest fall since the beginning of the year. As of 10:35 a.m. Central European Time, it was down 7.2%.
The composite index of the region's largest companies, Stoxx Europe 600, dropped by 6.08%, reaching 466.16 points.
The decline was especially pronounced in shares of defense and industrial giants. Rheinmetal shares fell by 27%, prompting a temporary suspension of trading.
Significant losses were also recorded by other companies: Rolls-Royce fell by 9.6%, and Thyssenkrupp by 10.5%.
A similar trend was observed on other stock exchanges: the UK’s FTSE 100 dropped by 5.3%, France’s CAC 40 by 6.5%, Italy’s FTSE MIB and Spain’s IBEX 35 by 6.5% and 6.6% respectively.
The plunge was triggered by a statement from former U.S. President Donald Trump about the introduction of new import tariffs, which sparked retaliatory measures from China.
Beijing announced 34% tariffs on U.S. goods. Market participants fear an escalation of the trade conflict and a global economic slowdown.