The President of the Dutch central bank, Klaas Knot, has stated that underlying price pressures in the euro zone may pose challenges, although monetary policy is exhibiting signs of effectiveness.

Investor sentiment regarding the euro zone economy took a downturn in June, largely driven by negative expectations for Germany, the largest economy in Europe, according to a survey conducted by economic analysis company Sentix.

The monthly survey, which assesses whether investors hold positive or negative views on growth prospects, revealed a drop in sentiment to -17 points for June, compared to -13.1 in May. This figure was even lower than the expected -15.1 predicted by analysts surveyed by Reuters.