The Centre for European Economic Research (ZEW) announced that the German economic sentiment index fell to -39.3 in March from +54.3 in February.
The slump in the sentiment index suggests that Germany is more likely to face a recession.
The sentiment index fell to a record low since data collection began in December 1991. It was influenced by concerns about the war in Ukraine and the imposition of economic sanctions on Russia.
The ZEW current condition index fell from -8.1 in February to -21.4 in March.
In addition, European stock markets opened lower today as commodity stocks slumped, dragging the market down. Crude oil prices fell almost 6% as investors were concerned about the number of coronavirus cases in China, which continue to skyrocket.
Meanwhile, investors are waiting for the outcome of the Federal Reserve’s (Fed) monetary policy meeting, which starts today.
WTI oil prices fell 5.86% to $96.97 a barrel this afternoon after forecasts came in that peace talks between Russia and Ukraine were on track.