EUR on Retreat as Germany Begins to Slow Down

Signs that tensions between the West and Russia are starting to hurt confidence in Europe’s dominant economy Germany left the euro near an eight-month low on Friday and lifted the region’s government bonds.

European shares dipped – a lead Wall Street was expected to follow by opening around 0.2 percent lower ESc1 with the focus on U.S. manufactured goods figures after what has been packed week of company earnings. [.N]ECONG7

Germany’s Ifo survey had set the tone by revealing a hefty fall in business confidence over the last few weeks, prompting concerns the region’s growth engine and driver of its recovery could be stuttering

 
It was the third consecutive fall in an index which monitors the mood of thousands of German firms, and Ifo’s economists admitted the scale of the decline this month had come as a surprise.

“Geopolitical tensions are taking their toll on the German economy,” Ifo said. “Companies were also less optimistic about future business developments.”

via Reuters

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