Germany's June IFO Business Climate Index meets expectations, with business confidence continuing a modest rebound

```htmlGolden Ten Data reported on June 24 that Germany's June IFO Business Climate Index rose to 85.6, in line with market expectations. After dropping to its lowest level since October 2022 in April, German business confidence rebounded in May and continued to improve in June. However, the strength of this rebound remains limited, and the current climate index is still within the lowest range since early 2025. At least for now, the worst effects of the Middle East crisis appear to have ended—especially as pressure from rising energy prices has started to fade, providing short-term support for business sentiment. Meanwhile, both the Current Conditions Index and the Expectations Index have further improved, giving some hope for the German economy to pick up in the second half of the year. However, what truly needs to be watched is that stagflation risks will persist over the long term. Particularly if the situation in the Strait of Hormuz remains unchanged, the global economy will have to adapt to a new normal—and this adjustment process itself entails risks. Before the eurozone economy can improve in the future, it may still face additional downward pressure.```