European markets fall on Germany's economic weakness

Largest economy in region sheds 0.2%

(ANSA) - Rome, August 14 - Unexpected weakness in the German economy, Europe's largest, triggered financial market turmoil Thursday. Germany's gross domestic product (GDP) lost 0.2% in the second quarter compared with the first three months of the year, results that were weaker than expected. As well, France's economy was stagnant in the same period and following on data last week showing that Italy is back in recession, the overall economic news for the region has been bleak.

European financial markets responded with a sell-off. By mid-day, Italy's FTSE Mib was down 0.97% at 19,347.19, German's DAX index fell by 0.29% to 9,172.08 and the CAC in Paris dropped by 0.46% to 4,172.56 points.