• Germany's news in English
 
app_header_v3
China troubles spook investors in Germany
A stock investor checks prices in a brokerage house in Jiujiang in central China's Jiangxi province on Friday. Photo: DPA

China troubles spook investors in Germany

AFP · 19 Jan 2016, 15:02

Published: 19 Jan 2016 15:02 GMT+01:00

The investor confidence index calculated by the ZEW economic institute declined by 5.9 points to 10.2 points in January, the think tank said in a statement.

"The beginning of the new year is characterised by capital market turmoil in China, which has also led to significant share price declines in Germany," said Sascha Steffen, ZEW's head of international finance and financial management research.

"As in the previous year, weak economic growth in China and other important emerging markets is putting a strain on Germany's economic outlook," Steffen said.

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 rose by 4.7 points to 59.7 points in January, ZEW said.

Capital Economics economist Jennifer McKeown said the decline in the index "confirms that the recent turbulence in global financial markets and the soft tone of the domestic hard data have dented investor sentiment."

The expert said that "admittedly, the rise in the current conditions index to a high level is an encouraging sign, but it is at odds with the weaker tone of the hard data.

"In all, while we do not see German growth grinding to a halt, we still envisage a slowdown from about 1.5 percent in 2015 to one percent or so this year," McKeown said.

BayernLB economist Stefan Kipar pointed out that the ZEW barometer has only limited informative value with regard to gross domestic product (GDP) growth.

Story continues below…

"It offers no reason to slide into pessimism," he argued, pointing out that the eurozone and German economies in particular would continue to benefit from the renewed drop in oil prices and robust consumer demand.

"Too much mustn't be read into the decline in the ZEW index," Kipar said.

SEE ALSO: German business grits teeth as Chinese economy slows

For more news from Germany, join us on Facebook and Twitter.

Your comments about this article

Today's headlines
Germany says 'won't let anyone take Europe from us'
Steinmeier called the European Union “a successful project of peace and stability”. Photo: DPA

German Foreign Minister Frank-Walter Steinmeier said on Saturday that the EU would weather the shock of the British vote to leave the union as he convened crisis talks.

Brexit vote
Brexit will turn Berlin into 'Europe’s startup capital'
A sign in Berlin's tech giant and startup-building company Rocket Internet. Photo: DPA.

London is currently thought of as the main hub for startups in Europe, but that will all turn around when the UK leaves the EU, tech industry experts say.

Brexit vote - Analysis
'Germany needs to make UK come to its senses'
British Leave campaigners celebrate Brexit result. Photo: DPA

Britain leaving the EU means trouble ahead for Germany - and its hardest task will be convincing the Brits to drop a self-defeating ideology, a leading foreign policy expert told The Local.

How to get German citizenship (or just stay forever)
Photo: DPA.

Considering a change of passport after the UK's vote to ditch the EU? Here’s how to do it.

Germany makes fracking verboten
A sign in North Rhine-Westphalia. Photo: DPA.

German lawmakers approved a law that essentially bans fracking, ending years of dispute over the controversial technology to release oil and gas locked deep underground.

Brexit vote
German far right 'cries for joy' after UK votes to leave EU
Left to right: AfD's Beatrix von Storch and Frauke Petry. Photo: DPA

The far-right AfD party called for a "new Europe" and the resignation of the EU's top two politicians in the wake of the Brexit vote.

Brexit vote
Merkel: Brexit has cut into European unity
Angela Merkel at a press conference after the Brexit vote on Friday. Photo: DPA.

Chancellor Angela Merkel said on Friday that the UK's decision to leave the EU has created a "cut in Europe" and the project of European unity.

Couple copulating on bridge shut down Autobahn
Kaiserlei Bridge in Frankfurt. Photo: Dontworry / Wikimedia Commons.

It was a highly unusual choice of location for a romantic rendezvous, police in Frankfurt point out.

Brexit vote
Germany: Brexit vote is a 'sad day for Europe'
A British flag along with other flags of European Union member countries flies in front of the European Council building in Strasbourg, France. Photo: EPA.

Top German leaders declared that it was a "sad day for Europe" after British voters opted to leave the European Union.

Viernheim hostage-taker wasn't carrying lethal weapon
A police officer stands guard in front of the cinema in Viernheim. Photo: DPA

The 19-year-old German man who took over a dozen people hostage in a cinema in western Germany on Thursday was carrying replica weapons, prosecutors have confirmed.

Sponsored Article
Why you should attend an international job fair
Features
How two gay dads cut through German red tape to start a family
Sponsored Article
Education abroad: How to find an international school
Features
Six odd things Germans do in the summer
Travel
These 10 little-known German towns are a must see
Sponsored Article
US expats: Taxes are due June 15th
National
Five things to know about guns in Germany
Sponsored Article
Avoid hidden fees when sending money overseas
Gallery
7 photos which show the aftermath of Bavaria's Autobahn bridge collapse
Culture
10 things you need to know before attending a German wedding
National
Eight weird habits you'll pick up living in Germany
Sponsored Article
Health insurance for expats in Germany: a quick guide
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Society
Only one country likes getting naked on the beach more than Germany
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Culture
8 German words that perfectly sum up your 20s
Sport
How to sound like an expert on German football this summer
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
Features
6 reasons Germany's summer is unbeatable for thrill-seekers
National
The future belongs to these 10 German regions
Society
How pictures of footballers on chocolates made Pegida really mad
Health
New father's tragic herpes warning touches 1000s online
National
Bayer's Monsanto takeover would be 'diabolical': environmentalists
7,900
jobs available
Toytown Germany
Germany's English-speaking crowd