Germany consumer sentiments - lower GfK reading!

German consumer sentiment data came in weaker than expectations and lower than the previous reading:

Sentiment by GfK: -25.5 vs. -24.5 expectations and -24.4 previously

Futures contracts on the DAX (DE30) lost slightly after the GfK reading, which indicates that consumers in Germany are getting weaker - which sounds quite recessionary - especially in the context of the continuation of the ECB's tightening cycle.

• Gradually, pressure may be mounting to keep rates unchanged at the ECB's September meeting, with Bloomberg sources recently indicating that with the eurozone's largest economy, Germany, weakening, such a move could become feasible.
• According to GfK, the chances of a sustained recovery before the end of the year are declining more and more, and private consumption in Germany is unlikely to have a positive impact on the economy in 2023.

Source: xStation5