EU-US trade deal sends euro zone investor sentiment plummeting
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.
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