ZEW economic sentiment seen deteriorating slightly in August – Morgan Stanely

Analysts at Morgan Stanley are out with their preview on the ZEW economic expectations survey for August, which will be published at 0900GMT.

Key Quotes:

“We expect the ZEW economic sentiment, which provides an early read on business sentiment amongst investors and analysts for the month of August, to fall by less than 0.1 standard deviations to 14.9, following a 17.5 print in July.

Sentiment among German financial analysts on the economic outlook for the next six months would thus have fallen a little further away from its long-term average of 24.1.

Current business conditions will likely fall only marginally. We pencil in a 1.2 point decrease to a reading of 85.2in August.

Together, these two ZEW series would result in a mild drop of the composite ZEW climate from 52.0 to 50.1. If confirmed, such a reading of the composite ZEW climate would be consistent with our initial estimate for the August Ifo business climate (published on August 25) of 115.6, a small downtick relative to the previous month.”