Let’s do a quick summary: Nasdaq closes with another record. Putin meets Trump in Helsinki. The earning season begins. Institutions begin their propaganda of “the markets are ready to rally again”. So let’s take a quick look at the bulls vs bears arguments.

Bulls are looking for a strong balance-sheet season for the second quarter which could make stock market traffic go green again. But the question is: how much has the trade dispute between the US and China slowed down the economy? Rising profits for shareholders, however, have been an important driver of the Dax rally in recent years. If central banks also start ‘easing the reins’ in light of ‘growth’ risks then of courses that will create the breeding ground for the next relief rally. As long as there is no threat of a new recession, it is widely accepted that stock prices should rise because, despite the many negative news, the earnings expectations have increased. Many investors continue to be optimistic for Germany and the eurozone as well, even though we have to adjust to the ridiculous nature of Trump’s Tweet-induced volatility.
 
Bears are still holding on to the new tariff threats against China. A potential trade war threatens global production chains and is causing nervousness among investors worldwide. Because of the escalation in the trade dispute, some dividend forecasts have already been lowered in Germany. Also, growth in China is weakening. Let’s not forget that Trump is still alive; the longer this is the case, the more likely he’ll say stupid things like “I think the European Union is an enemy, what they do to us in the trade, they are an enemy.” Trump justified this statement with what he considered to be unfair trading practices among Europeans. He again attacked Germany in particular. 
He accuses Germany of not contributing sufficiently to defense within NATO and buying Russia’s energy and having an export surplus. 

16-07-2018 Dax Outlook – 60m Chart

16-07-2018 Dax Outlook – 250t Chart

16-07-2018 Dax Profile

16-07-2018 Dax