020 7898 0500The German ZEW figure came in at -24.7 in July which was far below the -18 analysts had forecast. Despite some recent positive economic data from Germany, it is clear that fears over a possible trade war with the United States continue to weigh heavily on investor confidence.
The picture wasn’t much rosier in the eurozone too, as its ZEW figure came in at -18.7 against an expectation of -13.2. Investors will clearly be hoping for a resolution to the situation before long and it could well be a case that the old adage ‘no news is good news’ doesn’t prove true in this case. The uncertainty is particularly damaging and there could be some who want to know what is going to happen, irrespective of what that might be.
The euro didn’t do all that bad considering, but we have known for some time now that interest rates are unlikely to increase until next year, and economic data from the eurozone has been disappointing overall. What a difference a year can make! Still, if a resolution to the trade war is forthcoming, we could see a reversal in fortunes.
