German business confidence misses expectations in January

A reading on German business confidence for January came in weaker than expected on Monday.

German research institute Ifo’s business climate index fell to a seasonally-adjusted 107.3 from 108.6 the previous month and below the 108.4 reading expected by economists.

Meanwhile, the current assessment index printed at 112.5 compared with 112.8 in December and undershooting expectations for a reading of 112.8.

The expectations index slid to 102.4 from 104.6 the previous month, falling short of expectations for 104.1.

SpreadCo analyst David Morrison said: "It’s a disappointment, undershooting the consensus expectation by more than a full point and also the lowest reading since this time last year.

"However, coming hard on the heels of last week’s dovish ECB statement, it does lift hopes that the central bank will announce further stimulus at its next meeting in March."