German investors’ confidence in their domestic economy has plummeted since the UK voted to leave the EU, research suggests.
Confidence is at its lowest level in four years – falling to -6.2 this month, from 19.2 in June.
The investor confidence index produced by the Centre for European Economic Research (ZEW) gauged the sentiments of 220 analysts and investors, both towards the current market, and over the next six months.
The 26-points drop means the index has not been this low since November 2012.
In June, ZEW said investors were barely fazed by the impending referendum – but the unexpected leave vote means there is growing concern about Germany’s export prospects and the stability of the European banking and financial system as a whole, said ZEW president Achim Wambach.
Additionally, German investor sentiment towards the Eurozone has declined by 34.9 points to -14.7.
“The Brexit vote has surprised the majority of financial market experts – uncertainty about the vote’s consequences for the German economy is largely responsible for the substantial decline in economic sentiment,” he said.
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