German Sentiment Slips to 7-Month Low
World Economy

German Sentiment Slips to 7-Month Low

German economic sentiment slumped to a seven-month low in June, a sign that the economic upswing in Europe’s largest economy is losing momentum.
The ZEW think tank said Tuesday its indicator of economic expectations dropped for the third straight month to 31.5 in June, from 41.9 in May. That was the lowest level since November 2014, when the indicator stood at 11.5, MarketWatch reported.
The outcome was worse than expected. Economists polled by The Wall Street Journal had forecast a decline to 37.0.
ZEW president Clemens Fuest said “uncertainty over Greece’s future and the restraint dynamic of the global economy” are dampening economic sentiment.
The 229 analysts and institutional investors participating in the ZEW survey were also less content with Germany’s current situation. The corresponding indicator fell to 62.9 in June from 65.7 in May.
In another sign of increased uncertainty, Germany’s DAX 30 shares index has fallen about 12% since its April peak. At 0905 GMT it traded at 10,860, compared with 12,391 on April 10.
For May 2015, the trend reversal in the ZEW Indicator of economic sentiment for the Eurozone also made investors in European equity wary of their holdings.
The Europe-tracking SPDR EURO STOXX 50 ETF was down 1.08%, while the Vanguard FTSE Europe ETF declined 1.03%. European companies’ ADRs (American depository receipts) also lost on Friday. STMicroelectronics was down 0.85%, Alcatel-Lucent  was down 1.54%, Novo Nordisk dipped 0.16%, and SAP shed 1.44%. AstraZeneca and ABB were also down by about 0.59% and 1.14%, respectively.


Short URL : http://goo.gl/OMz8qK

You can also read ...

Philippines May Suspend Excise Taxes on Petroleum Products
The Philippine government will suspend the collection of...
Jordan Approves New IMF-Guided Tax Law
Jordan’s cabinet on Monday approved major IMF-guided proposals...
At present, the majority of investments are still being done in oil-gas and traditional industries while there is still almost no SME sector in the country.
While Saudi Arabia’s latest budget figures show progress in...
SBI Reports Record $1.1b Loss
State Bank of India reported a loss of Rs. 7,718 crore ($1.1...
US, China are nearing a deal to remove American sales ban against ZTE.
US President Donald Trump retreated from imposing tariffs on...
Dubai Bank to Buy Turkey’s Denizbank for $3.2 Billion
Dubai’s biggest lender the National Bank of Dubai has agreed...
IHS Markit to  Buy Rival Ipreo  for $1.8 Billion
Data firm IHS Markit Ltd. said it will buy smaller rival Ipreo...
Catalonia Main Risk to Spain Growth
The political situation in Catalonia is one of the main...