Germany's closely-watched Ifo business confidence index fell more than expected to a two-year low of 90.9 from 92.5, data showed yesterday, exacerbating fears that Europe's largest economy may be edging towards recession.

Meanwhile, price data for June from four German states indicated that German inflation should slow to around 3.1 per cent from 3.5 per cent in May, supporting the ECB's assessment that price pressures had now peaked. - (Reuters)