Frankfurt March 21 2023: German investor confidence has dropped more than expected, ending a six-month run of improving economic sentiment after turmoil erupted in the banking sector, according to a monthly poll of market analysts.
The ZEW Institute’s gauge of investor expectations for Europe’s largest economy fell to 13, down from 28.1 in February, in the first sign of how hard the collapse of several US lenders and the forced rescue of Credit Suisse by UBS have hit market sentiment. Economists polled by Reuters had expected a decline to 16.4.
“The international financial markets are under a lot of pressure,” said ZEW president Achim Wambach, adding that investors’ assessment of banks’ earnings had “deteriorated considerably” and their view of insurers’ prospects had also worsened.
