Reports

German economy loses steam

The sentix economic index (composite index) for Germany falls in April for the third time in a row. While 6-monthexpectations have been dragging down the indicator over the past months, it is now also the assessment of the current situation which is not lending support to the composite index anymore. The German economy thus loses steam. The big question now is how the euro-zone economy will react to this. Still, it is looking robust: The composite index for the euro area increases, once more, slightly. But expectations are down a little for the second consecutive month. For the rest of the world sentiment is improving slightly in April. Investors are again more upbeat for the Emerging markets regions after last month's Crimean crisis shock. Also do they see improvements for the US. But sorrows are growing for Japan: Here, the composite index falls markedly for the third time in a row. 6-monthexpectations for Japan's economy have now reached a level last seen in November 2012. That was exactly the time when the so-called "Abenomics" started to take effects on investors' confidence. Their positive impact has obviously faded now.