Trade dispute, Brexit weigh on German investor morale

BERLIN, Oct 16 (Agencies): German investor confidence plunged sharply in October, the ZEW economic institute said on Tuesday, as German export firms fret over a worsening trade spat between China and the United States.
The ZEW's closely-watched monthly barometer fell by 14.1 points to -24.7, the steepest drop recorded since Britain voted to leave the European Union in July 2016.
The ZEW research institute's monthly survey showed economic sentiment among investors deteriorated to -24.7 from -10.6 in September.
This undershot a Reuters consensus forecast for a smaller drop to -12.0. The indicator reached the same low-point as in July, the lowest reading since August 2012.
"Expectations for the German economy are dampening above all due to the intensifying trade dispute between the USA and China," ZEW researcher Achim Wambach said.
"A further negative influence on economic and export expectations is the danger of a 'hard Brexit', which is becoming ever more likely."
The United States and China are in a bruising tit-for-tat tariffs dispute that threatens to hurt global growth as well as "innocent bystander" nations, IMF Managing Director Christine Lagarde has said.
British Prime Minister Theresa May's speech to parliament on Monday showed that reaching a deal on the country's exit from the European Union will be even harder than expected, a senior EU official said on Tuesday.