German sentiment down sharply
Head of Macro Analysis
Summary: The latest ZEW survey of economic sentiment in Germany gave EU investors another reason to worry.
As mentioned in a previous analysis, vehicle sales of leading European car brands in the US in May 2018 came in large part down to German carmakers. In the case of auto import tariffs, they will be the first ones to suffer. Though the Trump administration has been recently targeting China, it cannot be ruled out that it will turn to Europe and Germany next.
This survey confirms that the growth outlook is clouded and that lower growth is coming to Germany at the worst possible time, and in a context of lower liquidity and rising political risk. It is yet another macro data point suggesting that investors need be careful.