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Euro zone investor morale bounces but outlook uncertain - Sentix

Reuters  |  BERLIN 

(Reuters) - Investor morale in the euro zone rose in July to end a five-month run of declines, a survey showed on Monday, but group Sentix said the of escalating trade tensions with the risked depressing sentiment again.

Sentix's index for the euro zone rose to 12.1 from 9.3 in June. The consensus forecast was for a fall to 8.2.

"This development is unlikely to herald the start of a new upswing," Sentix said in a note.

"If U.S. now targets the European car industry, the trade dispute could lead to more than a slowdown in economic sentiment," it added.

threatened last month to impose a 20-percent import tariff on all EU-assembled vehicles, which could upend the industry's current business model for selling cars in the

also hit the EU, and with tariffs of 25 percent on and 10 percent on aluminium at the start of June, ending exemptions that had been in place since March. The EU and responded with their own levies on U.S. goods.

has also hit U.S. goods with tariffs in response to Trump's decision to impose levies on Chinese imports, spooking German manufacturers who rely on the world's two largest economies for growth.

A Sentix index of German investor morale fell to 16.2 from 18.5 in June, registering the sixth decline in a row and hitting its lowest level since February 2016.

Sentix surveyed 917 investors between July 5 and 7.

(Writing by Paul Carrel, editing by Thomas Escritt)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 14:22 IST
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