ZEW: Investor confidence index in German economy falls to 3.6 points
Investor confidence in the German economy has fallen to its lowest level, the agency reported. Bloombergcame to the Centre for Research in European Economics (ZEW).
We are talking about the September decline of the ZEW Institute Expectations Index to 3.6 points. In August, this figure reached 19.2 points. Economists assumed that it would reach 17, but no one predicted such a decline. The unfavorable dynamics are associated with the fact that the future of the manufacturing giants of the leading European economy looks increasingly uncertain.
According to ZEW President Achim Wambach, hopes for a rapid improvement in the economic situation are fading noticeably, but he stressed that pessimism is growing in relation to the entire eurozone.
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Bloomberg points out that Germany’s outlook has worsened after output unexpectedly contracted in the second quarter amid weak industrial data. Economist Martin Ademmer noted that the sharp decline in the ZEW index adds to the recent flow of negative news concerning the German economy. The likelihood of another decline in GDP in the third quarter is growing.
Deutsche Bank economist Robin Winkler said the situation is now almost as bad as it was at the start of the coronavirus pandemic.
“The optimism of spring is gone. A dark autumn is on the horizon,” he said.
According to Investing.com as of 15:03, Germany’s main stock market index DAX grew up to 18,789.15 points. This indicator tracks the stock prices of the 30 most successful German companies that are traded on the Frankfurt Stock Exchange. At the same time, on September 16, at the close of trading on the DAX fell by 0.38 percent.
Meanwhile, a new fund linked to the stocks of Germany’s largest companies is set to appear in the UAE. According to Bloomberg, Middle Eastern investors’ turn to German stocks as they look to invest in Europe’s largest economy runs counter to the pessimistic assessments of its health.
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