German investor confidence tumbled in April as the ongoing rescue in Cyprus and slowing growth around the Eurozone took its toll on Europe's largest economy.
The ZEW Centre for European Economic Research in Mannheim said its benchmark index of investor sentiment fell to 36.3 points in April from 48.5 points in March. A poll of economist conducted by Reuters suggested experts had anticipated a reading of 42 points. The index of current conditions fell to 9.2 points from 13.6 points, the ZEW said, adding that 81 percent of those responding to its monthly survey expected no change in short-term interest rates in the next six months.
"Basically, the surveyed financial market experts remain confident, but are less optimistic than they have been in the previous month. The decline in economic sentiment is consistent with the release of economic data that fell short of expectations", said ZEW President Dr. Clemens Fuest in the release. "German exports into the Eurozone as well as the rest of the world have declined, for instance. The debt crisis in the Eurozone is still unresolved and causes uncertainty."
The Euro fell to a session low of $1.3028 against the US dollar immediately after the release, which coincided with figures from Eurostat which showed no change to it previous readings for monthly or annual inflation around the Eurozone last month.
Annual Eurozone inflation slowed to 1.7 percent in March, Eurostat said, and accelerated 1.2 percent from February. The European Central Bank's preferred target for consumer price changes is at or around 2 percent.