18 June 2018 (8:02 AM EDT)
German index DAX had crashed by more than -200 points in this first session of the week, on worries of a political instability and that the German Chancellor Angela Merkel may have to leave her post after difference within the ruling coalition government.
Angela Merkel’s Christian Democratic Union had failed to garner full majority in last elections and had formed a coalition government with the support of Christian Social Union (CSU) party. Now, CSU in threatening to withdraw it support to Merkel on her immigration polices. Citing various sources,, a CNBC.com reports said, that these differences could force Angela Merkel to leave office “within weeks.”
This is why German markets are crashing today, dragging down other European markets and U.S. stock futures along with.
So now, U.S. stock markets are facing a new problem and this could keep these markets and European markets quite volatile in coming days or weeks.
U.S. stock futures are trading highly negative at the time of writing. Futures of Dow Jones are down by -200 points at this time. This would mean an opening near its another support level of 24,800 for this index. After a low opening, this mega index an broader U.S. stock markets will either in a narrow range near opening levels, or decline further.
If there are any reports off reconciliation in German political parties- either today or in days to come, that can work like a huge relief and U.S. and European stock markets will then recover from these levels.
Right now, its a downtrend in European stocks and U.S. stocks are also expected to trade in a subdued manner, at least initially.
In their last session, U.S. stock markets had seen a lower opening but then, buying support helped major indexes in recovering their initial losses. Today, day traders should wait and watch for any such support and then trade with the trend.