Surprise fall in German investor confidence
GERMAN investor confidence unexpectedly fell for the first time in six months, signalling caution over the outlook for the euro area's economic recovery.
The ZEW Centre for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, slid to 61.7 in January from a seven-year high of 62 in December.
Economists predicted an increase to 64, according to the median of 40 estimates in a Bloomberg News survey.
Germany is relying on domestic consumption to support its economic growth as the 18-nation euro area struggles with record unemployment and shrinking bank lending.
The Bundesbank has predicted that German gross domestic product will expand "strongly" in coming months after signs of a slowdown in the final three months of 2013.
"The fundamentals of the German economy remain strong," said Carsten Brzeski, senior economist at ING Groep NV in Brussels.
"In our view, there are sufficient arguments in favour of an acceleration of economic growth rather than in favour of a drop in soft indicators."
The euro was little changed at $1.3533 while Germany's DAX stock index was up 0.4pc at 9,754.
Frankfurt-based Deutsche Bank AG reported a surprise fourth-quarter loss. (© Bloomberg)