San Francisco Frontiers - Mideast war peace deal boosts German investor morale

NYSE - LSE

CMSD	-0.27%	22.26	$
RBGPF	0%	62.87	$
CMSC	0.11%	22.365	$
NGG	0.86%	82.28	$
BCC	-0.04%	71.56	$
BCE	-0.92%	23.82	$
RIO	-0.14%	105.74	$
BTI	0.52%	61.38	$
GSK	-0.02%	52.22	$
BP	-1.07%	41.15	$
RYCEF	2.58%	18.59	$
JRI	0.23%	12.81	$
RELX	-0.12%	32.8	$
VOD	-0.74%	14.89	$
AZN	0.81%	178.71	$

Mideast war peace deal boosts German investor morale

ECONOMY 16.06.2026

Mideast war peace deal boosts German investor morale / Photo: © AFP

German investor confidence jumped sharply in June, a key survey showed Tuesday, as the outlook improves for Europe's biggest economy following the announcement of a US-Iran peace deal.

Text size:

The ZEW institute's economic expectations index rose 20.7 points from negative territory in May to reach 10.5.

Analysts surveyed by the financial data firm FactSet had expected the index to rise less sharply and remain in negative territory.

"Financial market experts expect the Iran conflict to be nearing an end," said the institute's president, Achim Wambach.

"This is likely to ease the massive pressure on energy prices and inflation, which would benefit energy-intensive industries and private households and would strengthen domestic demand."

The turmoil triggered by the war, which began in late February with US and Israeli strikes on Iran, dealt another blow to Germany, which was already struggling to recover from a long decline.

The economy had been set for a rebound this year on the back of hefty government spending, but forecasts have been dialled back due to the conflict.

With Tehran and Washington now having agreed a deal, which is due to be signed Friday in Switzerland, hopes are growing that the outlook will brighten.

Ships have started moving through the Strait of Hormuz, one of the world's most important energy chokepoints, which was almost totally closed by the war.

According to the ZEW survey, expectations improved sharply in Germany's auto sector as well as in the chemical and pharmaceutical industries.

But the index still remains far lower than before the war, when it stood at around 60 points.

A total of 190 analysts and institutional investors participated in the survey, which was conducted from June 8 to 15.

Y.Harris--SFF

Featured

Paris store to part ways with Shein after ownership change

French department store BHV Marais will end its partnership with Shein after its operating company said Tuesday it was selling the Paris outlet, following criticism of its deal with the Asian e-commerce giant.

US Federal Reserve kicks off first meeting with Warsh as chair

US Federal Reserve Chairman Kevin Warsh kicked off his first meeting in charge of the central bank's rate-setting committee on Tuesday, with policymakers largely expected to keep rates steady as the fallout of the Iran war ripples through the world's largest economy.

Oil drops below $80 on US-Iran deal

Oil prices dropped below $80 a barrel Tuesday on optimism over the promised reopening of the Strait of Hormuz, easing inflation pressures on global economies even though traders are eyeing the risk of Iranian "service fees" on ships transiting the strait.

How can France-UK mission help reopen Strait of Hormuz?

A military mission set up by France and Britain to help re-open the Strait of Hormuz is ready to deploy, following the announcement of a US-Iran deal to end the Middle East war.