Germany sees first rise in investor confidence in 6 months

Investor confidence in the German economy fell for the first time in 6 months due to increasing concerns about risks in the banking sector. The expectations index of the ZEW Institute in Germany fell from 28.1 to 13 in March. The expectation was 15. The current conditions index fell from minus 45.1 in February to minus 46.5. The expectation was minus 44.3. ZEW President Achim Wambach stated that international financial markets were under pressure due to the crisis in the banking sector and said, "Banks' profitability expectations have deteriorated significantly." In a report published yesterday, the Bundesbank predicted that the German economy would shrink in the first 3 months of the year. The Ministry of Economy also stated that although there were signs of improvement in the data, the possibility of a recession could not be ruled out. Industrial production and factory orders in Europe's largest economy performed better than expected at the beginning of the year, but high inflation continues to be a pressure on consumers.