- Current conditions -81.0 vs -78.0 expected
- Prior -77.8
- Outlook 10.5 vs -6.0 expected
- Prior -10.2
The current conditions reading might be poor, falling to its weakest since December last year. However, the good news is that the outlook reading has rebounded back to positive territory. And that likely reflects the optimism tied to the latest US-Iran developments.
While German investor sentiment remains in the dumps for now, the expectation is that things should improve as the Strait of Hormuz looks to reopen at some point after the US and Iran signs off on a framework agreement.
US president Trump has claimed that it will be “fully reopened” on Friday but Iran has said that they might need time to manage things as they have to also “clear off mines”. Both sides will likely agree to a 30-day period to gradually reopen the waterway, all the while Iran continues to maintain control over traffic flows.
