A survey has shown that German investor confidence plunged to a record low point in July, as high oil prices and a rising euro hit Europe's biggest economy.
The ZEW research institute said its closely watched indicator of economic sentiment fell 11.5 points to minus 63.9, the lowest level since the survey began in December 1991.
ZEW said that, as well as oil and the euro, the financial crisis in the US, an interest rate hike by the European Central Bank and weak domestic consumer demand were likely to put pressure on German companies in the coming six months.
A negative level indicates that financial experts expect the German economy to decline in the coming half-year.
Financial markets have been rocked in the past week by sharp falls in the shares of two US mortgage finance giants, Fannie Mae and Freddie Mac, while investment giant Lehman Brothers and other US banks have also been affected by falling confidence in the banking sector.
