16 Jun 2015
German ZEW drops in June – ING
FXStreet (Barcelona) - Carsten Brzeski of ING, reviews the German ZEW expectations index data release, noting that the drop to 31.5 in June signals the further loss in confidence of the German economy.
Key Quotes
“Losing optimism. Today’s ZEW index signaled a further loss in confidence in the strength of the German economy, at least from investors. The headline number dropped to 31.5 in June, from 41.9 in May, and now stands at its lowest level since November last year. At the same time, the current assessment component remained relatively high, dropping marginally to 62.9, from 65.7 in May.”
“In these exciting days when events come thick and fast, today’s ZEW index is just a snapshot. A snapshot which has probably not fully incorporated latest Greek events. Looking at the facts, even if the small rebound in the euro and oil prices, combined with the latest correction on stock markets, has dented German investors’ confidence somewhat, this should not necessarily be a harbinger for weaker growth In the Eurozone’s largest economy.”
“To the contrary, the fundamentals of the German economy currently rather point to an acceleration and not a slowdown in the second quarter. Needless to say that this positive scenario would become obsolete if and when the Greek crisis would escalate further.”
Key Quotes
“Losing optimism. Today’s ZEW index signaled a further loss in confidence in the strength of the German economy, at least from investors. The headline number dropped to 31.5 in June, from 41.9 in May, and now stands at its lowest level since November last year. At the same time, the current assessment component remained relatively high, dropping marginally to 62.9, from 65.7 in May.”
“In these exciting days when events come thick and fast, today’s ZEW index is just a snapshot. A snapshot which has probably not fully incorporated latest Greek events. Looking at the facts, even if the small rebound in the euro and oil prices, combined with the latest correction on stock markets, has dented German investors’ confidence somewhat, this should not necessarily be a harbinger for weaker growth In the Eurozone’s largest economy.”
“To the contrary, the fundamentals of the German economy currently rather point to an acceleration and not a slowdown in the second quarter. Needless to say that this positive scenario would become obsolete if and when the Greek crisis would escalate further.”