German Investor Sentiment Falls Sharply in July
Introduction
The ZEW Economic Research Institute said today, Tuesday, that German investor sentiment fell sharply in July.
The institute’s economic sentiment index recorded a value of -14.7 points from -8.5 points in June.
Expectations vs Reality
A Reuters poll had expected the July index to hit a record -10.5 points.
Reasons for the Negative Outlook
The head of the institute, Achim Wambach, said that financial market experts expect the economic situation to worsen further by the end of this year.
He added that rising interest rates on short-term loans in the euro area and the US, in addition to weakness in export markets such as China, are the main reasons for the negative outlook.
