020 7898 0500The two main releases from the eurozone yesterday were the ZEW economic sentiment indices from Germany and the eurozone as a whole. Both were expected to dip a little, but by nowhere near as much as they did. German business confidence has been struggling for a while, and it was thought that from -8.2 in May, the index would hit -14 in June. However, the figure actually came in at -16.1.
In the eurozone, it has been expected to dip from 2.4 to 0.1, but it dramatically fell to -12.6 – the lowest reading since July 2016. Both releases are a clear sign that fears over the ongoing battle with trade tariffs is significantly affecting confidence in the economy.
Today we’ll see the employment change figures for the first quarter of 2018, as well as the industrial production figures for April. Month-over-month, the figure is expected to have dropped from 0.5% to -0.5%, while year-on-year it is expected to have contracted a little from 3.0% to 2.8%.
