A leading German research institute has seen its benchmark investor sentiment index drop for the fourth consecutive month. The think tank said the latest dip reflected uncertainties surrounding the Ukraine conflict.
Investor sentiment in Germany as measured by the Mannheim-based ZEW economic research institute reached its lowest level in eight months in April.
The think tank reported Tuesday it's widely watched monthly survey showed a marked decline in confidence among financial market players, with its benchmark index dropping by 3.4 points month-on-month to 43.2 points.
The barometer thus hit the lowest level in eight months, following weaker results for four months in a row.
The cautious expectations in this month's survey were most likely caused by the Ukraine conflict, which still creates a good deal of uncertainty," ZEW President Clemens Fuest said in a statement. "But the decline in economic expectations has taken place against the backdrop of a very positive evaluation of the current economic situation in Germany."
The sub-index gauging investors' view of the current business environment did indeed rise by 8.2 points to 59.5 points in April, reaching the highest level since July 2011.
Market pundits across Europe have always treated the ZEW's barometer with caution. They maintain the index has often been too volatile to be widely accepted as reliable long-term.
hg / rg (AFP, Reuters)