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“From today’s standpoint, the German economy could be extending its recovery in the current quarter, albeit at a noticeably slower pace,” Germany’s Bundesbank noted in its monthly report on Monday, per Reuters.

“The recent, strong increase in infection numbers and the associated containment measures taken in some regions may hurt mostly the service sectors and the hotel and catering industries,” the publication further read. “An abrupt correction in property prices is not in the offing as long as there is no severe disruption to the current economic recovery.”

Market reaction

Germany’s DAX 30 Index remains deep in the negative territory after Bundesbank’s comments and was last seen losing 2.25% on the day at 12,359.