Greece uncertainty sours German investor sentiment: ZEW

Investor sentiment in Germany fell to its lowest level in seven months in June as the uncertainty over Greece and subdued global growth weighed on confidence, a leading survey found on Tuesday.

The widely watched investor confidence index calculated by the ZEW economic institute fell by a steeper-than-expected 10.4 points to 31.5 points in June, its lowest level since November 2014, ZEW said in a statement. Analysts had been expecting a less marked decline this month to 37.3 points.

"External factors are reducing the scope for further improvement of Germany's good economic situation. These include, in particular, the ongoing uncertainty over Greece's future and the restrained dynamic of the global economy," said ZEW president Clemens Fuest.

Greece and its creditors are locked in a stalemate after loan talks collapsed, bringing Athens just two weeks away from a catastrophic default on its debt.

The talks concerning the release of the 7.2 billion euros ($8.1 billion) in rescue funds remaining in Greece's bailout have dragged on for five months.

For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.