German investor sentiment falls sharply: ZEW

Investor sentiment in Germany fell sharply in June because of worries about the eurozone debt crisis and a possible economic downturn in the United States, according to the ZEW index published on Tuesday.

The ZEW Indicator of Economic Sentiment for Europe’s biggest economy fell by 12.1 points in June to stand at minus 9.0 points, far below the indicator’s historical average of 26.3 points.

“Troubles in the eurozone as well as the feared economic downturn in the United States appear to be weighing heavily on the minds of financial market experts,” said Wolfgang Franz, head of the ZEW institute.

“Moreover, financial market experts are seeing more and more evidence that the boom of the German economy may weaken during the months to come,” he said in a statement.

The closely watched monthly index was based on a survey of 290 analysts and institutional investors.