German investor confidence at a 6-year low due to trade tensions

A study conducted on Tuesday showed that the sentiment of German investors in July fell to its lowest level since August 2012, fearing growing trade tensions with the United States.

ZEW Research Institute said Tuesday Economic confidence fell to -24.7 from -16.1 in June. This compares to the average forecast of a Reuters poll that stands at -18.0

A separate index measuring the current economic situation of investors rose from 80.6 to 72.4 last month. "The current investigation period has been marked by a significant political fog … concerns over the escalating global trade war with the United States, in particular, have led to a deterioration economic outlook, "said Echim Vampach, president of ZEW. Last week, Finance Minister Olaf Schultz warned that the US President's decision to impose tariffs on imported goods has had a positive impact on foreign trade, orders and the labor market. German. Trading partners Such as China and the EU will hurt everyone.

The weak reading of the ZEW sentiment came despite a package of positive news from Europe's largest economy.

German exports rose more than expected in May, industrial production, suggesting that German factories regain strength after a weak start to the year.