Coronavirus deals blow to German investor confidence

Confidence among investors in Europe's largest economy Germany fell back in February, a closely-watched survey showed, with researchers blaming the novel coronavirus for nipping a rebound in the bud. The ZEW institute's monthly barometer measuring expectations for the coming months fell 18 points, to 8.7.

"Fears of negative consequences for global trade from the coronavirus epidemic in China have led to a striking fall," ZEW chief Achim Wambach said in a statement. "Expectations for export-intensive sectors fell back especially strongly," he noted.

Confidence among German businesses and investors had returned to an upward trend around the turn of the year, as China and the US buried the hatchet in a trade conflict whose knock-on effects proved painful for the country's manufacturers. But infection control measures taken against the COVID-19 illness by Beijing in recent weeks have slammed the brakes on the Chinese economy, vital to Germany as both an export destination and a link in global supply chains.

The 194 analysts and financial players surveyed by ZEW were gloomier about both the present economic situation and the outlook for the coming months for Germany and its eurozone neighbours. "The new judgments of the present situation and falling expectations make clear that economic momentum is quite fragile at the moment," Wambach said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)