The latest Sentix survey of investors suggests that investor confidence in the eurozone has improved.
The index, based on a survey of over 900 investors, rose to 12.3 in July, from 9.3 in June. Meanwhile, Reuters’ analysts had forecast a decline to 8.2.
According to Sentix, the rise in the eurozone index is “unlikely to herald the start of a new upswing”.
Trump's trade war, which is now aimed at the European car industry, can drag the growth of economic sentiment.
The US imposed tariffs on imports from China and increased steel and aluminum duties on imports from the EU. The countermeasures did not take long: the EU and China imposed tariffs on US goods.
In July, the Sentix indicator of investor confidence for Germany continued its downtrend. The indexfell to 16.2 in July from 18.5 in June.
Germany seems to be particularly vulnerable to the expansion of trade disputes with the US, the think tank noted. Its key sectors, namely automakers and banks, suffer the most.