ECB's ultra-loose monetary policy yet to impact German economic sentiment

German economic data released on Tuesday continued to paint a mixed picture of the economy. Out of the three most prominent confidence indicators in Germany released on Tuesday, the Ifo index, rebounded in March to 106.7, from 105.7 in February, with both, the current assessment and the expectations component seeing gains. Data showed that German businesses have shaken off fears of long-lasting global slowdown.

Earlier on Tuesday, the PMI data came in unchanged at 54.1, pointing to continued growth in the first quarter. However, German ZEW economic sentiment improved less-than-expected in March as the financial experts' assessment of the current economic situation continued to worsen, survey results from the ZEW-Centre for European Economic Research showed Tuesday.

German ZEW economic sentiment rose to 4.3 in March from February's reading of 1.0, missing expectations for a rise to 5.0. The Current Conditions Index unexpectedly fell to 50.7 this month from 52.3 in February, compared to expectations for an increase to 53.0. Meanwhile, the index of euro zone economic sentiment dropped to a 15-month low of 10.6 in March from 13.6 a month earlier, settling above forecasts for a reading of 8.2.

"The uncertainty associated with the future economic development of important emerging economies, with the development of the oil price and with the external value of the euro continues to call for caution," Sascha Steffen, head of the ZEW Research Department, said.

"Apparently, the renewed move of the ECB to considerably ease its monetary policy has not had a substantial effect on economic sentiment," he added.