The German IFO business confidence index unexpectedly fell to 82.1 from 82.6 in March, which is the worst reading since November 1982, as firms remained fearful of a deepening recession throughout the euro-region. Meanwhile, the gauge for future expectations increased to 81.6 from 80.9 in the previous month, while the current assessment dropped to 82.7 from 84.3. The data suggests that investors are optimistic for the future however, as economists forecast the region to face its worst economic downturn since World War II, the outlook for growth and inflation remains bleaks. Moreover, IFO economist Nerb sees room for the ECB to cut the key rate by at least 50bp next week, and said the central bank could cut rates by as much as 100bp in an effort to stimulate the ailing economy.
