Boost in German business sentiment fails to halt stock market declines

BETTER-than-expected business sentiment data from Germany failed to halt falls on international stock markets yesterday but helped slow their declines.

Germany’s underwhelming bond auction on Wednesday had raised fears that the eurozone debt crisis was spreading to the region’s largest economy, but concerns were eased yesterday with a report showing an unexpected rise in business confidence in the country, for the first time since June.

However, a reiteration from German chancellor Angela Merkel about not wanting to change the role of the European Central Bank (ECB) to help ease the debt crisis failed to win over investors.