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Is Consumer Confidence Weakening in the Eurozone?

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Eurozone consumer confidence index so far in July

According to a report from the European Commission, the Eurozone Consumer Confidence Index has remained unchanged so far in July (through July 24) compared to June. It reached -0.6 so far in July compared to the same point in June, and it’s above the market expectations of -0.7.

The index measures the level of confidence that consumers have in the economy. The consumer confidence index fell for the second time in July after showing strong improvement in the past six months.

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The rising trade tensions in the economy affected overall investor confidence. However, after the United States’ imposition of import tariffs on European cars, the policymakers in Europe and China (FXI) entered discussions to strengthen their trade relations. However, consumers are still concerned about the slowing economic activity.

Market performance

Among the major ETFs that cover the Eurozone (N100-INDEX), the Vanguard FTSE Europe ETF (VGK) and the iShares Europe ETF (IEV) rose 2.8% and 3%, respectively, through July 24. The iShares MSCI Germany ETF (EWG) and the iShares MSCI France ETF (EWQ) rose 4.2% and 3.2%, respectively, for the month through July 27.

In the next part of this series, we’ll analyze the performance of the German Ifo business climate index so far in July.

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