Eurozone Sentix Investor Confidence dropped to -3.3 in June, down from 5.3 and missed expectation of 2.5. Current Situation Index dropped from 11.0 to 6.0. Expectations index dropped from -0.3 to -12.3.

Sentix noted that “renewed escalation in the US-China trade dispute is also having a considerable impact on the Euro zone economy”. Also, it warned “the Euroland economy is once again on the threshold of recession”. Sentix also complained that “more than ever, the economic forecast becomes a short-winded Twitter analysis.”

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The Overall Investor Confidence Index for Germany tumbled from 7.9 to -0.7, lowest since March 2010. Current situation Index dropped from 18.3 to 13.5. Expectations Index dropped from -2.0 to -14.0. Germany’s key industry, the automotive industry, is still “in a crisis of its own making”. And the “current government coalition’s inability to act does not contribute to stabilization.”

For US, Overall Investor Confidence Index dropped from 17.7 to 6.5, lowest since February 2016. Current Situation Index dropped from 43.3 to 31.8, lowest since October 2016. Expectations Index dropped from -5.3 to -16.0. Sentix warned that Trump could “underestimate how much he is currently threatening to shoot himself in the knee with his trade rhetoric”. The US economy is “currently experiencing a real emergency stop.”

Full release here.

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