What is causing the drops now?
Everything has been due to the announcement of new tariffs by Trump on 8 European countries (Denmark, Germany, France, Spain, Italy, Netherlands, Belgium, and Sweden).
Why does this cause such violent drops?
Because the announcement triggers selling and panic, leading to cascades of liquidations in the futures markets, intensifying the declines.
What could happen now?
We know that Trump uses tariffs as a tool of pressure/negotiation.
It always follows the same pattern:
1- Aggressive announcement with markets closed.
2- Fear and volatility.
3- Opening of a negotia
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