Anxiety over the ramifications of Britain's decision to leave the European Union has dragged investor confidence in Germany to its lowest level in nearly four years. The mood among market players was worse than expected.
A closely watched barometer of investor sentiment revealed widespread pessimism among Germany's institutional market players on Tuesday.
The Mannheim-based ZEW economic institute said its latest survey of some 220 leading analysts and investors had suffered a 26-point drop in its confidence index, which gauges financiers' opinions of their current situation as well as their expectations for the next six months.
The index fell to minus 6.8 points in July, far below the 19.2 points it achieved in June. The drop surprised observers, who had noted a jump in sentiment last month despite unease over Brexit.
"The Brexit vote caught most financial market experts off guard," said ZEW President Achim Wambach.
cjc/kd (Reuters, AFP)