BERLIN (Reuters) – German investor sentiment plummeted in March as fears of another financial crisis ended a five-month streak, the economic research institute ZEW said on Thursday. rice field.
The Institute’s index, which measures the outlook for the economy over the next six months, fell 15.1 points to 13.0 in March, below analysts’ expectations of 17.1 polled by Reuters.
ZEW President Achim Wambach said that “international financial markets are under intense pressure” and a high level of uncertainty is reflected in economic forecasts.
Market repercussions from the failures of mid-sized US banks Silicon Valley Bank (SVB) and Signature Bank this month triggered the collapse of 167-year-old Credit Suisse (CSGN.S), sending investors to other US banks. I am concerned about a potential bomb ticking at the location. financial system.
VP Bank chief economist Thomas Gitzel said investors’ concerns that disruptions in the banking sector were weighing on the economy were not unwarranted. “The focus is not on the fear of further bank failures, but on whether banks on both sides of the Atlantic will become more restrictive,” he said.
Hauck Aufhaeuser Lampe Private Bank chief economist Alexander Krueger downplayed lower expectations in an obvious reaction to the recent developments. “If the bank’s concerns are not confirmed, there is great potential for a recovery,” he said.
Krueger added that the continued low assessment of the economic situation makes more sense economically.
Germany’s assessment of economic conditions plunged further into negative territory in March, falling to -46.5 from -45.1 the previous month, below analyst expectations of -44.3.
Reporting by Friederike Heine, Rene Wagner, Klaus Lauer; Writing by Miranda Murray; Editing by Rachel More, Matthias Williams, and Tomasz Janowski
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