German stocks plummet amid trade tensions

German equities started this week in the red as Donald Trump showed no signs of changing his decision on import duties that could lead to a global recession.

The DAX was down 4.26% and hit a new three-month low on Monday at the close of trading in Frankfurt. Meanwhile, the DAX volatility index rose 3.04% to 21.14, Investing.com reports.

Investor sentiment was also affected by the weak data on German industrial production. In February, it decreased by 1.3%. A month earlier, the economic sector grew by 2%. According to HSBC, the duties imposed by Trump will deal a serious blow to Germany's industrial production.

At the same time, according to Deutsche Bank Research, US import tariffs may be raised further if other countries retaliate. However, the company believes the signs of emerging negotiations or the possibility of the duties coming down over time can result in strengthening stock markets.