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Reflections #15 - ZEW business pulse remains negative

The latest ZEW economic sentiment index remains in negative territory signaling a further loss in momentum in the German economy after a pick-up beginning of the year. The slowdown in the Chinese economy after the reopening boost in Q1 is taking a dent on sentiment in the German economy.

The Dax, however, seems unimpressed by the softening in economic activity and subdued sentiment as it hovers at the all time highs.

The disconnect cannot last forever. Either sentiment/activity picks up again soon or market euphoria is too high.


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