Euro ZEW Survey Suggests Emerging Markets Dampening Optimism
- Euro-Zone ZEW Survey economic sentiment down to 22.7
- German ZEW Survey economic sentiment down to 10.2, above expectations
- Euro little changed versus the US Dollar
The Euro was little changed versus the US Dollar after today’s Euro-Zone ZEW Survey showed Financial market experts' sentiment concerning the Euro-Zone’s economy is less optimistic. The Euro-Zone’s sentiment figure printed 22.7, which was below the prior 33.9. The German ZEW Survey Economic Sentiment index declined to 10.2 from the prior reading of 16.1, but was above economist’s expectations of 7.9. Interestingly, The Current Situation figure showed an improvement rising to 59.7 from the prior 55.0 reading, beating expectations of a 53.1 figure. A reading above 0.0 indicates optimism, while below indicates pessimism.
Looking into the press release, ZEW explained the decline in the outlook by commenting that weak economic growth in China and other emerging markets put a strain on Germany's economic outlook, and that the capital market turmoil in China led to significant share price declines in Germany.
With the ECB’s rate decision later this week, and CPI readings released at the same time as the report coming in line with expectations, the Euro was little changed versus the US Dollar.
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