Today’s publications by ZEW (Zentrum fur Europaische Wirtschaftsforschung) regarding consumer sentiment in Germany and the broader euro zone revealed regional confidence to be in stark decline this past month. Fraught with debt concerns and plummeting demand for manufactured goods, many consumers are rating their outlook much lower these days.
The news does not bode well for the euro zone as many analysts are anticipating a dismal second quarter. Rising energy costs and weakened demand have combined with interest rate pressures and debt concerns to form a four-front assault on regional and global growth. The news may boost risk aversion in the short-term, traders may also be on the lookout for short taking on stocks through the summer months.
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