Financial market experts' sentiment about Germany's economic growth dampened significantly in October due to the ongoing global trade tensions, according to German economic research institute ZEW.
The ZEW indicator of economic sentiment for Germany dived to negative 24.7 in October from negative 10.6 in September. The Econoday consensus estimate for the indicator was negative 15.0.
The indicator on experts' assessment of the country's current economic situation decreased to 70.1 in October, compared with expectations of falling to 74.4 from a reading of 76.0 in the prior month.
The negative expectation on German exports due to the intensifying trade dispute between the U.S. and China "are now beginning to show in the actual development of exports," according to ZEW President Achim Wambach. "A further negative influence on economic and export expectations is the danger of a 'hard Brexit,' which is becoming ever more likely," while the situation of the governing coalition in Berlin is also weighing on economic sentiment, Wambach added.
Meanwhile, the indicator for the current economic situation in the eurozone edged up by 0.3 point to 32.0 points in October. Inflation expectations in the bloc are also rising as the corresponding indicator climbed 9.2 points to 33.2.