Investing.com - German economic sentiment deteriorated to the lowest level since November 2012 in July, as the Brexit shock hit business confidence, industry data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment plunged by 26.0 points to -6.8 this month from June’s reading of 19.2. Analysts had expected the index to drop by 10.2 points to 9.0 in July.
The Current Conditions Index tumbled to 49.8 this month from 54.5 in June, below expectations for a reading of 51.8.
Meanwhile, the index of euro zone economic sentiment dropped to -14.7 in July, the lowest since August 2012, from 20.2 a month earlier, missing forecasts for 12.3.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
EUR/USD was trading at 1.1062 from around 1.1069 ahead of the release of the data, while EUR/GBP was at 0.8393 from 0.8390 earlier.
Meanwhile, European stock markets were broadly lower. Germany's DAX shed 1.2%, the EURO STOXX 50 slumped 1.2%, France’s CAC 40 lost 0.95%, while London’s FTSE 100 declined 0.45%.