German investor sentiment falls again: ZEW
Investor confidence in Germany has fallen in July for the second month running on worries about the eurozone debt crisis, US growth and the US debt ceiling stalemate, the ZEW indicator showed on Tuesday.
The closely watched ZEW economic expectations index fell 6.1 points to stand at minus 15.1 points, below the indicators historical average of 26.2 points. In June it experienced a sharper fall of 12.1 points.
The drop was worse than expected, with economists polled by Dow Jones Newswires predicting on average a fall to minus 11.5 points. The current conditions index rose however to 90.6 points from June's 87.6 points.
Jennifer McKeown at Capital Economics said that the index highlighted fears that the sovereign debt crisis in peripheral eurozone economies such as Greece, Ireland and Portugal "could soon do some serious damage to the German economy."
McKeown warned in a statement: "With the eurozone's largest economy unable to act as a locomotive, we see the regions recovery grinding to a halt in the coming quarters."
The monthly indicator compiled by the Centre for European Economic Research (ZEW) was based on surveys of 288 analysts and institutional investors, it said.
© 2011 AFP