Investor confidence about the Eurozone and German economies has collapsed in August, boosting the case for another interest rate cut by the European Central Bank next month.
The ZEW Indicator of Economic Sentiment for the Eurozone fell 25.8 points to 17.9 — the biggest drop since the early months of the Covid-19 pandemic in April 2020.
Germany, the Eurozone’s largest economy, suffered its worst fall in economic sentiment in two years. The ZEW index fell 22.6 points in a month to reach 19.2 — its lowest level since the start of the year. The fall was almost three times as big as expected by analysts polled by Bloomberg.
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