The German stock market, particularly the DAX Index, is encountering significant challenges due to recent economic updates. Germany’s GDP shrank by 0.2% in the fourth quarter, primarily attributed to plummeting exports. Concerns over U.S. tariff threats and weaker manufacturing performance further complicate the market outlook. Investors are keeping a close eye on how protectionist policies in the U.S. resonate within European markets, creating a cautious atmosphere in trading.