All eyes on German ZEW report – TDS

Research Team at TDS, notes that the last month’s German ZEW report stood out as the only one main German survey to show a substantial deterioration after the UK’s Brexit vote.

Key Quotes

“With equities reaching new highs and financial markets in general having digested Brexit as well as we could have hoped for, we look for a strong rebound in August for the heavily-hit expectations component to +10.0 (mkt +2.0), closer to pre-Brexit levels. For the current assessment we’re looking for a rise to 51.0 (mkt 50.3), as the recently-released Q2 GDP report suggests that growth momentum into the middle of the year was a bit stronger than we had thought.”