German ZEW Falls in October Raises Fears of Contraction

October 14, 2014 Share Print 0

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.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.