The German ZEW index, which surveys sentiment among German investors, surprised at its May reading with a much weaker than expected reading. The index came in at -10.7 points, against expectations of -5.3 points and an earlier reading of 4.1 points. Economists surveyed by the institute expect a significant deterioration in the economic situation over the next six months. On the other hand, economists add that the drop in expectations is largely dictated by expectations of continued interest rate hikes by the ECB, which, given the spectre of recession, could exacerbate its eventual magnitude.
Source: ZEW
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