The German ZEW* economic sentiment indicator fell for a fourth consecutive month in June. The headline expectations index dropped from 3.1 to -9.0, while the consensus was looking for a more moderate decline (to -3). Sentiment about the current situation deteriorated too after reaching an all-time high in May. The current situation index fell from 91.5 to 87.6, also below the consensus estimate. The continued problems in Greece and the weak economic data of recent probably contributed to the decline, while investors are also seeing increasingly evidence that the German economy is weakening after the strong first quarter.
ZEW ~ the Center for European Economic Research