Germany Ifo Plunges to 84.4 Lowest Since 2022, Deepening PMI Selloff Pressure on Germany 40

Germany's Ifo business climate index tumbled to 84.4 in April, missing 85.5 estimates and marking the weakest reading since October 2022, with expectations at 83.3—the softest since August 2023. This caps a rough week starting with dismal April flash PMIs: German manufacturing 51.2 vs 51.4 expected, services 46.9 vs 50.4, and composite 48.3 slipping into contraction for the first time since May 2025; Eurozone composite followed at 48.6 vs 50.2. Growth fears, fueled by US-Iran war impacts, drive downside risks for Germany 40 and European equities, euro below 1.07 USD, and falling bond yields.