European Economic Confidence Falls to Record Lows
THE TAKEAWAY: Eurozone economic confidence falls to 2.5 year low -> Consumer confidence reported as lower than initially estimated -> Euro trading at weekly lows
Eurozone economic confidence fell to its lowest level in June since late 2009, coming in at 89.9, yet still beating estimates by 0.3. Eurozone consumer confidence was lowered 0.2 to -19.8 from the initial estimation made at the beginning of the month, and the business climate indicator in June also dropped more than expected to -0.94, according to the European Commission.
Economic sentiment fell by 1.4 to 100.5 in Germany, the Eurozone’s biggest economy; France also saw a fall in sentiment from 91.8 to 93.3. Spanish sentiment actually was up 1 point, to 89.1.
In hopes of formulating a plan to halt the deepening crisis, European leaders will be meeting in a two-day summit, starting later this afternoon. Cyprus was the last country to fall victim to the crisis, they decided earlier this week to submit a request for a bailout.
The most recent economic sentiment release didn’t affect the Euro much, as the single currency already saw big losses to the dollar earlier in the session, when a rise in German unemployment instilled markets with a new wave of fear. As of 09:27 GMT, EUR/USD is trading around 1.2430, down from session highs above 1.2500.
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