Latest news with #ZEW
Yahoo
4 days ago
- Business
- Yahoo
German economic morale soars in June: 'Confidence is picking up'
Germany's economic confidence surged in June, as financial experts turned sharply more optimistic about the outlook, brushing aside earlier fears of trade disruptions. The ZEW Indicator of Economic Sentiment for Germany jumped by 22.3 points to 47.5 in June 2025, marking its highest level since the three-year peak of 51.6 in March and well above consensus forecasts of 35. The current situation index also improved, rising by 10 points to minus 72.0 — the largest monthly gain since April 2023. 'Confidence is picking up. In June 2025, the ZEW indicator sees another tangible improvement. Recent growth in investment and consumer demand have been contributing factors,' said ZEW President Professor Achim Wambach, PhD. He added that expansionary fiscal policy and the latest interest rate cuts by the European Central Bank could finally lift Germany out of its nearly three-year stagnation. Sentiment also brightened across the eurozone, with the ZEW index climbing by 23.7 points to 35.3, well above expectations of 23.5. The current assessment for the bloc improved as well, up 11.7 points to minus 30.7. Investor sentiment towards Europe remains broadly positive, as highlighted in the latest Bank of America Fund Manager Survey, which gathered insights from over 100 market professionals. A net 29% of respondents anticipate stronger European growth over the next twelve months, sustained by expectations of German fiscal stimulus. The outlook for European equities remains upbeat. A net 34% expect gains in the months ahead, and 75% see upside over the coming year, matching February's high. However, risks persist, with 68% of European investors citing the Trump administration's policy stance as the top threat to global growth, followed by concerns over a weakening US consumer, cited by 29%. Related Germany and France boost security around Jewish sites amid rising threats from Iran Germany is rearming, but what about its veterans? Despite the encouraging ZEW data, European stock markets fell sharply on Tuesday as escalating tensions between Israel and Iran weighed heavily on investor sentiment. The German DAX dropped 1.2% to around 23,400 points, its lowest since 8 May, reversing Monday's gains. The retreat was part of a broader risk-off move sparked by rising oil prices and growing geopolitical unease following US President Donald Trump's abrupt exit from the G7 summit in Canada. Trump's decision, which he said was unrelated to ceasefire negotiations, further clouded prospects for de-escalation in the Middle East. Investors were rattled by the prospect of prolonged conflict, which revived concerns over oil supply disruptions and pushed up inflation expectations. The biggest losers on the DAX included Fresenius Medical Care, down 5.13%, Commerzbank down 3.14%, Rheinmetall down 2.52% and Deutsche Telekom down 2.34%. Across the European banking sector, shares declined as well. AIB Group dropped 3.5%, Banco Santander lost 3.1%, while Commerzbank, Societe Generale and UniCredit each fell by 3%. Investor caution grew ahead of the US Federal Reserve's two-day policy meeting, which concludes with a rate announcement on Wednesday. Although traders broadly anticipate no change in interest rates for the fourth straight time, escalating geopolitical tensions and a renewed uptick in oil prices have added uncertainty to the outlook for monetary easing. In currency trading, the euro held steady at 1.1558 against the US dollar. Meanwhile, oil prices advanced, with West Texas Intermediate up 1.6 percent at $72.92 per barrel and Brent crude rising to $74.50. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
4 days ago
- Business
- Euronews
German economic morale soars in June: 'Confidence is picking up'
Germany's economic confidence surged in June, as financial experts turned sharply more optimistic about the outlook, brushing aside earlier fears of trade disruptions. The ZEW Indicator of Economic Sentiment for Germany jumped by 22.3 points to 47.5 in June 2025, marking its highest level since the three-year peak of 51.6 in March and well above consensus forecasts of 35. The current situation index also improved, rising by 10 points to minus 72.0 — the largest monthly gain since April 2023. 'Confidence is picking up. In June 2025, the ZEW indicator sees another tangible improvement. Recent growth in investment and consumer demand have been contributing factors,' said ZEW President Professor Achim Wambach, PhD. He added that expansionary fiscal policy and the latest interest rate cuts by the European Central Bank could finally lift Germany out of its nearly three-year stagnation. Sentiment also brightened across the eurozone, with the ZEW index climbing by 23.7 points to 35.3, well above expectations of 23.5. The current assessment for the bloc improved as well, up 11.7 points to minus 30.7. Investor sentiment towards Europe remains broadly positive, as highlighted in the latest Bank of America Fund Manager Survey, which gathered insights from over 100 market professionals. A net 29% of respondents anticipate stronger European growth over the next twelve months, sustained by expectations of German fiscal stimulus. The outlook for European equities remains upbeat. A net 34% expect gains in the months ahead, and 75% see upside over the coming year, matching February's high. However, risks persist, with 68% of European investors citing the Trump administration's policy stance as the top threat to global growth, followed by concerns over a weakening US consumer, cited by 29%. Despite the encouraging ZEW data, European stock markets fell sharply on Tuesday as escalating tensions between Israel and Iran weighed heavily on investor sentiment. The German DAX dropped 1.2% to around 23,400 points, its lowest since 8 May, reversing Monday's gains. The retreat was part of a broader risk-off move sparked by rising oil prices and growing geopolitical unease following US President Donald Trump's abrupt exit from the G7 summit in Canada. Trump's decision, which he said was unrelated to ceasefire negotiations, further clouded prospects for de-escalation in the Middle East. Investors were rattled by the prospect of prolonged conflict, which revived concerns over oil supply disruptions and pushed up inflation expectations. The biggest losers on the DAX included Fresenius Medical Care, down 5.13%, Commerzbank down 3.14%, Rheinmetall down 2.52% and Deutsche Telekom down 2.34%. Across the European banking sector, shares declined as well. AIB Group dropped 3.5%, Banco Santander lost 3.1%, while Commerzbank, Societe Generale and UniCredit each fell by 3%. Investor caution grew ahead of the US Federal Reserve's two-day policy meeting, which concludes with a rate announcement on Wednesday. Although traders broadly anticipate no change in interest rates for the fourth straight time, escalating geopolitical tensions and a renewed uptick in oil prices have added uncertainty to the outlook for monetary easing. In currency trading, the euro held steady at 1.1558 against the US dollar. Meanwhile, oil prices advanced, with West Texas Intermediate up 1.6 percent at $72.92 per barrel and Brent crude rising to $74.50. US president Donald Trump and British prime minister Keir Starmer said Monday that they had signed a trade deal that will slash tariffs on UK auto and aerospace industry imports — but they are still discussing how to handle steel production. "We just signed it, and it's done," Trump said, as the pair spoke to reporters at the Group of Seven summit (G7) in the Canadian Rockies, with the US president brandishing the pages of what he said was a long-awaited agreement. The rollout was anything but smooth, however, as Trump dropped the papers and said at first that his administration had reached an agreement with the European Union when he meant the United Kingdom. The president said that the pact is "a fair deal for both" and would "produce a lot of jobs, a lot of income." British prime minister, Keir Starmer, said it meant "a very good day for both our countries, a real sign of strength." Reaching this agreement is a significant step as Trump has threatened much of the world with steep import tariffs that have unsettled markets and raised the possibility of a global trade war. He has since backed off on many of his proposed levies but also continued to suggest that administration officials were furiously negotiating new trade pacts with dozens of countries — even if few have yet to materialise. Trump said, "the UK is very well protected" from tariffs. "You know why? Because I like them." The signing of the deal at the G7 followed Trump and Starmer's announcement in May that they'd reached a framework for a trade pact that would slash US import taxes on British cars, steel and aluminium in return for greater access to the British market for US products, including beef and ethanol. But Monday's agreement fully covers only British cars and aerospace materials, with more work to come on steel. The British government said the new agreement removes US tariffs on UK aerospace products, exempting Britain from a 10% levy the Trump White House has sought to impose on all other countries — a boost to British firms, including engine-maker Rolls-Royce. It also sets the tax on British autos at 10% from the end of the month, down from the current 27.5%, up to a quota of 100,000 vehicles a year. UK Business and Trade Secretary Jonathan Reynolds said the deal protects "jobs and livelihoods in some of our most vital sectors." Mike Hawes, chief executive of Britain's Society of Motor Manufacturers and Traders, said it was "great news for the UK automotive industry." There was no final agreement to cut the tax on British steel to zero as originally anticipated — seen as vital to preserving the UK's beleaguered steel industry. Britain's steel output has fallen 80% since the late 1960s due to high costs and the rapid growth of cheaper Chinese production. After the two leaders spoke, the White House released a statement seeking to clarify matters, saying that with respect to steel and aluminium, Commerce Secretary Howard Lutnick will "determine a quota of products that can enter the United States without being subject" to previous tariffs imposed by the Trump administration. The British government said Monday that the plan was still for "0% tariffs on core steel products as agreed." Trump's executive order authorising the deal contained several references to the security of supply chains, reflecting the US administration's concerns about China. It said the UK "committed to working to meet American requirements on the security of the supply chains of steel and aluminium products intended for export to the United States." There was also no final deal on pharmaceuticals, where "work will continue," the UK said. The deal signed Monday also confirms that American farmers can export 13,000 metric tons (29 million pounds) of beef to the UK each year, and vice versa — though a British ban on hormone-treated beef remains in place.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
German Financial Confidence Rises Again
German confidence in the economy jumped again this month, helped by improving consumer demand and the expected boost from the new government's spending plans. The ZEW Indicator of Economic Sentiment, which this month tracked the expectations of 200 analysts at banks, insurance companies and other businesses, rose 22.3 points on month to 47.5 in June. Economists polled by The Wall Street Journal expected a weaker score of 35.0.
Reuters
4 days ago
- Business
- Reuters
German investor morale improved more than expected in June, ZEW finds
BERLIN, June 17 (Reuters) - German investor morale rose more than expected in June, the ZEW economic research institute said on Tuesday, reporting an increase in its economic sentiment index to 47.5 points from 25.2 points in May. Analysts polled by Reuters had pointed to a reading of 35.0. "Confidence is picking up," said ZEW president Achim Wambach. Fiscal policy measures announced by the German government, along with the European Central Bank's recent interest rate cuts, could bring economic stagnation in Germany to an end, added Wambach. The index measuring current conditions, though still in negative territory, also rose more than expected in June, to -72.0 points, from -82.0 points the month before. That forecast had been for -75.0 points in June.
Yahoo
13-05-2025
- Business
- Yahoo
German investors cheered by tariff talks, new government
German investor sentiment has jumped, buoyed by rollbacks of US tariffs, and the formation of a new national government, a closely-watched survey showed Tuesday. Market expectations for Europe's biggest economy over the next six months rose 39.2 points to sit at plus 25.2, clawing back much of the ground lost in a calamitous April fall, according to the May release of the ZEW survey. On April 2, US President Donald Trump imposed swingeing tariffs before pausing many of them for 90 days and entering negotiations after markets worldwide plunged. Achim Wambach, head of the ZEW institute, said the returned optimism was down to "the formation of a new government and movement in the tariff disputes". Trump has brought down an initial 20-percent tariff on EU imports to to 10 percent, and senior US and Chinese officials on Monday announced agreement to drastically lower sky-high tariffs on each other. Almost all German sectors experienced a rise in confidence, the survey showed, but optimism grew fastest in export-intensive industries such as steel and chemicals. The United States was Germany's top trading partner last year and a major market for its exports, which range from cars to machinery and chemicals. When it came to the domestic situation in Germany, investor sentiment remained negative and was down slightly on April's reading, to reach minus 82 points, a fall of 0.8 points. Germany's economy has shrunk for the past two years, hit by lukewarm demand for its exports in the face of patchy global growth and increasingly fierce Chinese competition, as well as high energy prices. Some economists hope that substantial infrastructure spending and reforms under the new governing coalition led by Friedrich Merz can help get the economy back on its feet. More than 190 analysts and institutional investors took part in the ZEW survey. vbw/rmb Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
