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Falling German sentiment dampens recovery hopes

HOPES of recovery in Germany were dashed yesterday by the second consecutive fall in the country&rsquo;s investor sentiment, which worsened by more than expected in November.<br /><br />The ZEW think-tank&rsquo;s monthly poll of economic sentiment posted its lowest reading in four months, dropping to 51.1 from 56 in October. <br /><br />A separate gauge of current conditions rose to -65.6 from -72.2. A reading of -70 had been forecast.<br /><br />But although the euro fell against the dollar following the survey&rsquo;s release, analysts remained upbeat. <br /><br />Analysts said that the poorer number reinforced expectations that the Eurozone&rsquo;s biggest economy faces another tough period in the first half of next year.<br /><br />A series of more upbeat indicators for Germany had pointed to the euro zone having emerged strongly from recession in the third quarter &ndash; the official GDP numbers for the Eurozone are due out this Friday.