Referendum jitters lead to decline in sentiment across Europe

European sentiment report came as the first sign of referendum jitters. The report doesn’t cover much of the actual tensions ppost-referendum which means in the coming months we may see further deterioration.

According to European Central Bank (ECB), an official exit by Britain from the European Union likely to weigh on Euro Zone growth over the coming years. In the coming months, business and economic sentiment likely to deteriorate the most.

• Euro zone business climate declined to 0.22. Still below levels last seen back in January this year.
   
• Industrial confidence surprisingly improved to -2.8. Still, confidence is weaker than that of last December. Economic sentiment declined to 104.4, still much below of 106.8 seen in December last year.
   
• Services sentiment declined to 10.8 in June from 11.3 in May, much below last September’s 12.4 reading.
   
• Consumer sentiment flat at -7.3.

Euro is currently trading at 1.109 against Dollar.