Mubasher: Sentiment among German investors endured a worse-than-expected slump in August, as the growth outlook for the Europe’s biggest economy deteriorated due to ongoing trade disputes and more prospects of no-deal Brexit, according to survey data released on Tuesday.
The indicator for economic sentiment for Germany plummeted to negative 44.1 points in August, from negative 24.1 in July, the Centre for European Economic Research (ZEW) said.
Meanwhile, analysts polled by Reuters expected the gauge to drop to negative 28.5 points.
“The most recent escalation in the trade dispute between the US and China, the risk of competitive devaluations, and the increased likelihood of a no-deal Brexit […] will most likely put a further strain on the development of German exports and industrial production,” ZEW president Achim Wambach said.
Furthermore, the separate gauge measuring investors’ assessment of the current conditions in the German economy fell to negative 13.5 points in August, dropping by 12.4 points in the preceding month.
By 10:04 am GMT, the EUR/USD pair edged down by 0.08% to $1.1205.