German investors’ morale dips

German stocks were hit yesterday as the Zew index pointed to another drop in investors’ confidence. The index of sentiment over the coming six months fell to 3.1, from 7.1 in April – its lowest level since November last year, although still above the long run average. The measure of current economic conditions improved, hitting 91.5. “The six month indicator signals that investors have become slightly more concerned about the sustainability of Germany’s growth spurt witnessed throughout 2010 and in the first-quarter of this year,” responded Frank Engels of Barclays Capital.