Analysts surprised by fall in German investor confidence in April (Bloomberg) (15-04-2008)

April 15 (Bloomberg) -- Concern that faster inflation, a stronger euro and fallout from the U.S. housing recession will hurt company earnings, has pushed German investor confidence down to -40.7 from -32 in March, while analysts had been expecting a gain to minus 30, according to the median of 41 forecasts in a Bloomberg News survey. The gauge reached a 15-year low of minus 41.6 in January.

The euro dropped more than half a cent to $1.5828 at 11:06 a.m. in Frankfurt after the report was released. The DAX index retreated as much as 25 points to an intra-day low of 6532.76.

Siemens AG, Europe's biggest engineering company, said March 17 that rising raw material costs will hurt earnings. Hochtief AG, the country's largest construction company, said March 26 it doesn't expect profit to grow this year as orders slow.

The International Monetary Fund last week cut its prediction for German economic growth this year to 1.4 percent from 1.6 percent. The IMF recommended the European Central Bank start cutting interest rates.

 Source: Bloomberg