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German investors gloomy about global slowdown, oil prices: survey

[FRANKFURT] Worries about slowing global growth and uncertainty about the economic consequences of low oil prices sent investor sentiment in Germany to a 16-month low, a leading survey showed on Tuesday.

The investor confidence index calculated by the ZEW economic institute declined by 9.2 points to 1.0 point in February, its lowest level since October 2014, the think tank said in a statement.

"The looming slowdown of the world economy and the uncertain consequences of the falling oil price put a strain on the ZEW" index, the statement said.

"In view of these developments, the concern over an increased credit default risk has already caused stock and bond prices for many banks in Europe, Japan and the US to slump," said Sascha Steffen, ZEW's head of international finance and financial management research.

For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.

The sub-index measuring financial market players' view of the current economic situation in Germany fell by 7.4 points to 52.3 points in February, its lowest level since January 2015, ZEW said.

AFP