Technicals

FXstreet.com (Barcelona) - Pessimism over the global economic outlook has not only affected severely stock markets, it has managed to impact the street, as the latest economic confidence indicator by the ZEW Economic Institute shows.

The ZEW economic expectations index has plunged to -63 in October from -41 in September a well sharper than expected decline, as market analysts had advanced a reading of about -52.2. Economic expectations fall further away from the 27.5 points historical average.

According to the ZEW institute, the survey has been made before German Government's decision to support private banks, a separate analysis carried on the day when the decision was published has shown somewhat better results.

The assessment of the current economic situation has worsened to -35.9 points in October, from -1 points in September. Economic expectations for the Euro Zone have also deteriorated, the indicator dropped 21.8 points to -62.7 points, while the current economic situation index for the Euro Area has dropped 34.7 points in October to 44.7 points.