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Consumer confidence in the European Union is falling, however, markets opened higher on Tuesday morning.

The DAX was 0.18% higher in early trade, the CAC 40 earned 0.67% and the FTSE 100 surged by 0.71%. The pan-European STOXX 600 was 0.76% higher.

Meanwhile consumer confidence in France has fallen more than expected in June, hitting a near nine-year low as concerns about the economic outlook surged amid high inflation and political uncertainty, a survey revealed on Tuesday. According to the INSEE official statistics agency, the consumer confidence index fell to 82 in June from the previous 85 in May.

Household sentiment about the general economic outlook continues to decline and has fallen to the lowest level since May 2020 when France was in the second month of its first and harshest COVID-19 lockdown.

Consumer sentiment was also low in Germany dropping to 27.4 in July from a previously revised 26.2 in June, this was a new record low.

In May, inflation levels in Germany surged to nearly 9% – the highest level in nearly half a century.

On Tuesday morning the head of the European Central Bank (ECB) Christine Lagarde played down concerns of a recession in the eurozone adding that her team is ready to raise rates at a faster pace if needed and if inflation continues to grow.

“If the inflation outlook does not improve, we will have sufficient information to move faster. This commitment is, however, data dependent,” Lagarde added Tuesday.

Central bank officials are gathered in Portugal for their annual conference focusing on surging consumer prices.

Inflation in the eurozone is now expected to surge to 6.8% this year, well above the ECB’s target of 2%.

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