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EU-US trade deal sends euro zone investor sentiment plummeting
Published by Global Banking & Finance Review®
Posted on August 4, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 4, 2025
2 min readLast updated: January 22, 2026
Euro zone investor sentiment fell in August due to the EU-US trade deal, which imposed a 15% import tariff on EU goods, impacting business outlook.
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)
The Sentix index for the euro zone turned negative in August, falling to -3.7 from 4.5 the month before.
Sentiment in Germany was massively dampened by the deal, with the overall index for investor sentiment falling to -12.8 in August from -0.4 in July.
The current situation sub-index declined to -13.0 in August from -7.3 a month prior.
Huebner described the tariff agreement as a 'real mood killer' for investors.
The survey of investor sentiment included 1,050 investors, conducted from July 31 to August 2.
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