Germany ZEW expected to weaken in August

Last month, the ZEW investor economic sentiment indicator disappointed despite a rise in the assessment of the current situation. 

For August, both expectations and current conditions are expected to weaken further in the aftermath of the Greek and Chinese stock market turbulence. 

"Expectations are expected to decline to 28.3 and current conditions to 61.2. At these levels expectations are broadly in line with historical averages, while current conditions is still well above", says Societe Generale. 

The current uncertainty is expected to remain for some time, which could imply a gradually weakening trend in the expectations index for some time, but real GDP growth in Germany should still hold up well in the coming quarters.