Latest data released by ZEW - 16 June 2020

  • Prior -93.5
  • Expectations 63.4 vs 60.0 expected
  • Prior 51.0
  • Eurozone expectations 58.6
  • Prior 46.0

The headline reading remains largely subdued amid current economic conditions globally but the standout remains the fact that expectations/outlook is extremely optimistic. ZEW notes that there is growing confidence that the economy will bottom out by the summer.

However, ZEW does warn that earnings expectations are strongly negative for export-oriented sectors such as autos and mechanical engineering, as well as financials. But they do mention that forecasts are fairly positive for tech, telco, and consumer-oriented services.