Germany ZEW economic sentiment index in April
According to data provided by the Centre for European Economic Research (ZEW), the Germany ZEW Economic Sentiment Index fell sharply in April. It stood at -8.2 in April as compared to 5.1 in March. The reading didn’t meet the market expectation of -1 and was the lowest reading since November 2012.
The ZEW Economic Sentiment Index measures economists’ level of confidence in the economy. The drastic fall in the economic sentiment index in April was mainly due to rising uncertainty about international trade and the US’s missile attack on Syria.
In the previous part of this series, we noted that German’s Ifo business climate also fell sharply in April. Production activity, retail sales, and exports orders all declined in Germany in 1Q18.
Performance of major ETFs
The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany (DAX-INDEX), fell 1.4% in March. The Vanguard FTSE Europe ETF (VGK), which tracks the performance of the Eurozone (N100-INDEX), fell 0.3% during the same time period. However, the EWG rose 1.9% so far in April 2018.
In the next part of this series, we’ll analyze UK inflation in March 2017.