- Bundesbank
German investor morale deteriorated in July with debt deal talks between Greece and its European partners contributing to mounting pessimism among financial market experts to a limited extent. According to a survey by ZEW thin-tank, German economic sentiment fell to 29.7 points, compared with 31.5 in June, but slightly above the consensus forecast for a reading of 29.0. This was the fourth straight month that saw investors' confidence in Europe's number one economy decrease. Meanwhile, the gauge measuring current situation rose to 63.9 in the reported month, up from 62.9 in June and compared with analysts' expectations of 60 points.
A separate report showed German annual inflation slowed sharply in June, a sign that the ECB's bond-buying programme has yet to yield its desired effect in the Euro zone's powerhouse. Cost of living in Germany rose by just 0.3% year-on-year, compared with the 0.7% increase in May. Consumer price inflation measured according to common European standards fell 0.2% from May, pushing the annual inflation down to 0.1% in June from 0.7% in May. Declining energy prices were the main downside contributor, as they were down 5.9% from June last year. Stripping out energy prices from the national measure, the annual inflation rate in June would be "significantly higher" at 1.1%, according to Destatis.
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