German investor morale fell sharply in October, new data showed on Tuesday, raising fears that the euro zone engine could contract in the third quarter of 2014.
Germany’s ZEW index of economic sentiment fell into negative territory for the first time since November 2012 as pessimism mounted over the outlook for the euro zone’s largest economy.
The ZEW index fell to -3.6 points versus 6.9 points in September. The euro fell to a day’s low of $1.2666 following the data. ZEW, an influential center for European economic research, said the disappointing figures concerned incoming orders, industrial production and foreign trade.
“[Disappointing data] have likely contributed to the growing pessimism among financial market experts,” ZEW President Professor Clemens Fuest remarked on the figures.
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