After the joy about the new all-time high in the German share index, the market is now threatened with the next sideways phase, just one level higher than the 16,000 mark.
China reminded at the weekend that the trade conflict with the US could escalate again at any moment. This is a risk for global stock markets, especially for European stocks. For example, Micron Technology products failed a cybersecurity review by the Chinese authorities, and Beijing warned its companies not to buy them. The technology sector has long become the central playing field for national security between the two largest economies. The US has already blacklisted Chinese tech companies, disrupted the flow of advanced processors and banned its citizens from investing in the local chip industry.
The outperformance of European indices this year rests on three pillars: the avoidance of an energy crisis, the relative stability of the banking sector and the hope that the Chinese economy will regain momentum after the lockdowns. However, the growth of the second largest economy is currently looking a little shaky. Recent economic data releases show little sign of rapid growth, and the high level of spending that some had been hoping for has not materialised.
The base prospectus as well as the final terms and the basic information sheets can be obtained by clicking on the disclaimer document. Also note the further hints to this advertisement.