According to the report from ifo Institute, German business morale tumbled in March, suggesting that Europe's largest economy is heading towards recession due to the impact of the coronavirus.

The IFO Business Climate Index revision came in at 86.1 in March, weaker than the preliminary data of 87.7 while missing the consensus estimates (87.7). Current Economic Assessment arrived at 93.0 points in the reported month as compared to the last reading of 93.8 and 93.6 anticipated. The Expectations Index - indicating firms' projections for the next six months, came in at 79.7 for March, up from the first estimate of 82.0 and missed expectations (81.9).

"This is the steepest fall ever recorded since German reunification and the lowest value since July 2009," Ifo President Clemens Fuest said in a statement.

"The German economy is in shock," Fuest added.