Germany's economic sentiment index tumbled in August past market estimates to land at -55.3 points, the Leibniz Centre for European Economic Research (ZEW) reported on Tuesday, noting that the current situation index also declined but topped expectations at -47.6 points. The economic sentiment across the euro area unexpectedly plunged to -54.9 points.
Financial markets experts are expecting another decline in Germany's economic growth, per the preliminary data released today, with soaring inflation and living costs decreasing the profit outlook for the private consumption sector. On the other hand, expectations for the financial sector are improving due to the European Central Bank's interest rate hikes.
The euro turned to losses against the dollar following the report, declining 0.31% to sell for 1.01292 at 11:09 am CET.
