Mario Draghi

Trade war fears weigh on investor sentiment in Germany

The possibility of a U.S.-led trade war is worrying investment professionals in export-oriented Germany, Europe's largest economy.

The ZEW index of economic sentiment sagged to 5.1 points in March from 17.8 points in February. The main reason was a more pessimistic outlook for coming months, while assessments of how things are currently slipped by less.

The survey is based on interviews with investment analysts on how they see things shaping up in Europe's largest economy.

The ZEW research institute in Mannheim said Tuesday that "concerns over a U.S.-led global trade conflict have made the experts more cautious in their prognoses. " A recently stronger euro,...