BERLIN (Reuters) -Investor sentiment in the euro zone unexpectedly tumbled in August in one of the first indications that the business community is unimpressed with the European Union's new trade deal
Euro Zone Investor Sentiment Dips Following EU-US Trade Agreement
BERLIN (Reuters) -Investor sentiment in the euro zone unexpectedly tumbled in August in one of the first indications that the business community is unimpressed with the European Union's new trade deal with the United States, a survey showed on Monday.
The Sentix index for the euro zone turned negative in August, falling to -3.7 from 4.5 the month before, ending three months of increases and falling far short of a forecast from analysts polled by Reuters of an increase to 8.0 this month.
"The tariff agreement is proving to be a real mood killer," said Sentix managing director Manfred Huebner in a statement.
The U.S. struck a framework trade agreement with the EU late last month, imposing a 15% import tariff on most EU goods.
The survey of 1,050 investors, conducted from July 31 to August 2, after the deal was struck, also showed declines in their assessment of the current situation and expectations.
The current situation sub-index declined to -13.0 in August from -7.3 a month prior, while expectations took an 11-point fall to 6.0.
Sentiment in Germany, Europe's largest economy, was massively dampened by the deal, which will require the government in Berlin to have a rethink, added Huebner.
The overall index for investor sentiment in Germany fell to -12.8 in August from -0.4 in July, ending three months of gains.
(Reporting by Miranda Murray, Editing by Friederike Heine)
