- German ZEW Economic Sentiment Index worsens to 4.1 in April vs. 15.1 expected
Market news
German ZEW Economic Sentiment Index worsens to 4.1 in April vs. 15.1 expected
- Germany’s ZEW Economic Sentiment Index unexpectedly dropped in April.
- EUR/USD bulls keep highs near 1.0980 on the mixed ZEW surveys.
The German ZEW headline number showed that the Economic Sentiment Index unexpectedly worsened in April, arriving at 4.1 from 13.0 in March, missing the market expectation of 15.1 by a wide margin.
Meanwhile, the Current Situation Index came in at -32.5 from -46.5, better than the market expectation of -40.0.
During the same period, the Eurozone ZEW Economic Sentiment Index worsened to 6.4 from 10.0, compared to the estimates of 19.8.
Key points
The financial market experts are still uncertain.
Experts expect banks to be more cautious in granting loans.
Still high inflation rates and the internationally restrictive monetary policy are also weighing on the economy.
On the positive side, the danger of an acute international financial market crisis seems to have been averted.
Earnings expectations for banks and insurance companies have improved compared to the previous month and are once again clearly in positive territory.
Market reaction
The EUR/USD pair has ignored the mixed data, holding the higher ground near 1.0980, up 0.47% on the day.
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