The ZEW Indicator of Economic Sentiment for the Euro Area climbed by 18.6 points from the prior month to 9.5 in June 2026, way better than market forecasts of -7.2. The improvement was underpinned by hopes of a resolution to the Middle East conflict, which should alleviate pressure on energy prices and inflation. In June, 57.7% of analysts expected no change in economic activity, while 25.9% anticipated improvement and 16.4% expected deterioration. The index measuring inflation expectations declined by 19.5 points to 45.8. Meanwhile, the assessment of the current situation was less favorable, with the index falling by 2 points to -43.4.