FXStreet (Mumbai) - The ZEW Indicator of Economic Sentiment declined in January 2016. The index dropped by 5.9 points compared to the previous month and currently stands at 10.2 points (long-term average: 24.7 points). The indicator has declined for the first time following two consecutive increases. Professor Sascha Steffen, head of the "International Finance and Financial Management" Research Department at ZEW said "The beginning of the new year is characterised by capital market turmoil in China, which has also led to significant share price declines in Germany. As in the previous year, weak economic growth in China and other important emerging markets puts a strain on Germany's economic outlook”. Financial market experts' sentiment concerning the economic development of the Eurozone has weakened. ZEW’s Indicator of Economic Sentiment for the Eurozone has decreased by 11.2 points to a reading of 22.7 points. Gaining 2.1 points in January 2016, the indicator for the current situation in the euro area has climbed to a value of minus 7.5 points. The assessment of the current situation in Germany, in contrast, has slightly improved. Growing by 4.7 points, the index now stands at 59.7 points. For more information, read our latest forex news.