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German investor confidence at its lowest level in six years

2018-07-10 02:20 pm | Resource: NEWS | No Views : 124

A survey by the European Economic Research Center showed on Tuesday that political uncertainty had weakened German investor confidence to its lowest level in nearly six years in July.

Germany's ZEW Economic Sentiment Index fell 8.6 points to minus 24.7 points, the lowest reading since August 2012, according to the Mannheim Research Center.

The result was well below the long-term average of 23.2 points. Economists had expected a reading below 18.5.

The current conditions index for the survey fell 8.2 points to 72.4 in July. Economists had expected a reading of 78.2. The index fell for the sixth month in a row.

"The current survey period has been characterized by considerable political uncertainty," said ZIM Wembach, the organization's president. And "in particular, the fears of an escalation of the international trade war with the United States have eased economic prospects."

The positive news about industrial output, incoming orders and the labor market has been overshadowed by the expected negative effects on foreign trade, she added.

Carsten Berzysky, an economist at ING Bank, said the German economy was not getting close to falling. "Instead, it seems to be in transition to normalizing growth," the economist said.

The euro-zone investor confidence index fell 6.1 points to 18.7 points. The current conditions index fell 3.7 points to 36.2 points.

Given the weak economic outlook for both Germany and the euro area, inflation expectations also fell significantly compared to the previous month, the institute added.

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Time frame Used - four hours The USD/JPY is moving in a sideway direction in the near term. The USD/JPY is still facing resistance and selling pressure around levels of  111.42 - 110.92 as the USD/JPY is floating in a narrow range and the USD/JPY is moving above the Bollinger's moving average line within the narrow range, indicating a potential price explosion but Not yet determined in any direction. In…

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