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    Consumer confidence in the Eurozone drops to -14.6 in December, worse than the expected -14

    by VT Markets
    /
    Dec 19, 2025
    Eurozone consumer confidence for December was reported at -14.6, which is worse than the expected -14. This decline highlights ongoing worries about inflation and economic growth, affecting how consumers feel. These results contribute to ongoing discussions about monetary policy and the Eurozone’s economic recovery. The European Central Bank is monitoring trends in consumer confidence as economic conditions change.

    Weaker Than Expected Confidence

    The lower consumer confidence reading of -14.6 for December 2025 indicates persistent economic challenges. Households appear to be more pessimistic, which may lead to lower retail sales in the first quarter of 2026. For traders, this outlook emphasizes caution regarding the Eurozone economy. This data point adds pressure for the European Central Bank. Consumer sentiment is weak while inflation remains high, with Eurostat’s flash estimate for November 2025 at 2.8%, above the 2% target. The Eurozone economy has only grown by 0.1% in the third quarter of 2025, narrowly avoiding a technical recession. Given this situation, we expect more negative sentiment surrounding the Euro. Derivative traders may consider buying put options on the EUR/USD, anticipating a potential drop below the 1.05 level reached earlier this year. The weak consumer outlook might prompt the market to expect a more dovish stance from the ECB in 2026.

    Potential Weakness For Equities

    This situation may lead to weakness in European equity markets, especially in consumer-focused sectors. We think put options on the Euro Stoxx 50 index could be a good strategy to hedge against or take advantage of a downturn. Looking back at the slowdown from late 2023, similar drops in consumer confidence often led to underperformance in European stocks. With the ECB’s key deposit rate currently at 3.25%, this data increases the likelihood of rate cuts being moved up to 2026. Traders might use interest rate futures to position themselves for lower rates next year. This signals that the high-rate cycle starting in 2022 is now putting significant pressure on consumers. Create your live VT Markets account and start trading now.

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