DANISH STOCK MARKET ROLLERCOASTER 🎢
Stocks in Denmark begin trading with losses as Trump's latest tariffs are implemented
Major Danish players like Novo Nordisk, DSV, and Zealand Pharma took a beating on Wednesday morning as stock markets opened, witnessing drops ranging from four to five percent.
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The C25 index, consisting of the 25 most traded Danish stocks, plunged by over three percent at the morning bell, following a turbulent streak including a 2.4 percent rise on Tuesday.
Wednesday's descent is primarily due to the introduction of a 20 percent US tariff on goods from the EU. By 9:30am, pharmaceutical titan Novo Nordisk was among the biggest losers in the index, shedding over five percent. Zealand Pharma wasn't far behind, succumbing to a nearly five percent drop. The only exemption to this downturn was Rockwool, which climbed by less than one percent.
The overall C25 index, which weights companies by turnover, represents the 25 most active stocks on the Copenhagen Stock Exchange.
ADDITIONAL INSIGHTS
The US President, Trump, has hinted at further aggression by announcing plans to enforce a "large" tariff on pharmaceutical products. This escalation could spell even more turbulence for the Danish economy.
Experts, however, believe that the impact of Trump's tariffs on Danish goods might not be as severe as initially anticipated. Roughly a quarter of Denmark's exports to the United States will remain untouched by tariffs, according to the Danish Chamber of Commerce.
A total of 1,039 product categories, including pharmaceuticals, electronic components, and energy, are exempt from the reciprocal tariffs that Trump announced last week. Still, it's important to note that Trump has since announced plans to tariff pharmaceuticals as well.
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Open market turmoil attributed to Trump's tariffs has raised the specter of an international recession. However, Trump has been adamant that he will maintain his aggressive trade policy regardless of market reactions.
European stock markets plummeted at the opening on Wednesday as Trump's steep new tariffs sparked a fresh wave of sell-offs in global equities.
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Sources: [1], [2], [3], [4], [5]
- The C25 index, which represents the 25 most active stocks on the Copenhagen Stock Exchange, plunged by over three percent on Wednesday due to the introduction of a 20 percent US tariff on goods from the EU.
- Among the biggest losers in the index was Novo Nordisk, which saw a drop of over five percent, while Zealand Pharma succumbed to a nearly five percent fall.
- Interestingly, the only exception to the downturn was Rockwool, which climbed by less than one percent.
- While the impact of Trump's tariffs on Danish goods might not be as severe as initially anticipated, with roughly a quarter of Denmark's exports to the United States remaining untouched, experts are still concerned about the potential escalation of the situation.
- Trump has hinted at further aggression, announcing plans to enforce a "large" tariff on pharmaceutical products, which could spell more turbulence for the Danish economy.
- The tumult in the open market attributed to Trump's tariffs has raised the specter of an international recession, with European stock markets also plummeting at the opening on Wednesday following the announcement.
