Investing.com – German economic sentiment fell significantly more-than-expected in April, falling for the second consecutive month, industry data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment fell to 7.6 in April, down from 14.1 in March.
Analysts had expected the index to decline to 11.3 in April.
On the index, a level above 0.0 indicates optimism; a level below 0.0 indicates pessimism.
The report also showed that economic sentiment in the euro zone fell significantly more-than-expected in April, plunging to 19.7 after rising to 31.0 in March.
Analysts had expected euro zone economic sentiment to fall to 29.8 in April.
Commenting on the report, ZEW President Wolfgang Franz said, “Despite the positive economic development, considerable risks may result from increasing commodity prices. These price increases could lead to second-round effects that could then force the European Central Bank to adopt a more restrictive monetary policy.”
Following the release of the data, the euro was slightly higher against the U.S. dollar, with EUR/USD edging up 0.04% to hit 1.4442.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 slumped 0.89%, France’s CAC 40 tumbled 1.2%, Germany's DAX dropped 1.05%, while the FTSE 100 was down 0.89%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment fell to 7.6 in April, down from 14.1 in March.
Analysts had expected the index to decline to 11.3 in April.
On the index, a level above 0.0 indicates optimism; a level below 0.0 indicates pessimism.
The report also showed that economic sentiment in the euro zone fell significantly more-than-expected in April, plunging to 19.7 after rising to 31.0 in March.
Analysts had expected euro zone economic sentiment to fall to 29.8 in April.
Commenting on the report, ZEW President Wolfgang Franz said, “Despite the positive economic development, considerable risks may result from increasing commodity prices. These price increases could lead to second-round effects that could then force the European Central Bank to adopt a more restrictive monetary policy.”
Following the release of the data, the euro was slightly higher against the U.S. dollar, with EUR/USD edging up 0.04% to hit 1.4442.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 slumped 0.89%, France’s CAC 40 tumbled 1.2%, Germany's DAX dropped 1.05%, while the FTSE 100 was down 0.89%.