The Dax index started the trading day on Thursday morning with a weak performance. By 9:30 am, the index was calculated at around 22,570 points, a 1.0% decrease from the previous day’s close.
Donald Trump has threatened the European Union with tariffs, specifically a 25% tax on all goods, according to Jochen Stanzl, chief market analyst at CMC Markets. “The number appears high and may be intended as a pressure tactic to obtain higher defense spending from Europeans” Stanzl said.
Trump has previously announced that the tariffs on Mexico and Canada will take effect on April 2, but has also hinted that they may come into force earlier in March. His statements are often vague and contradictory, as he tends to communicate through ambiguous threats and then acts on his own discretion.
A blanket 25% tariff on all exports to the US could push Europe into a deep recession. Trump’s actions are fueling global fears of an escalating trade war, a concern that has even made its way into the press conference of Nvidia, a leading American artificial intelligence company. The company is concerned about potential business losses due to the trade policy measures of its own government.
Despite this, the stock market showed a sigh of relief, as the quarterly results did not lead to a sharp decline in the company’s stock or the overall market. “Nvidia’s results, although exceeding expectations, can certainly be described as the weakest in two years. The outlook is disappointing and it is clear that Nvidia’s results will not be the expected driving force for the Wall Street” said Stanzl.
The production of the new Blackwell graphics chip generation is accompanied by enormous costs, which have significantly impacted the company’s margins. While other companies would be pleased with a margin of 71%, Nvidia’s investors are concerned. However, the company does not see a threat from China’s Deepseek innovation and instead expects a higher demand for graphics chips due to the democratization of AI development, as more companies invest in the relevant applications.