Germany’s closely-watched barometer of investor sentiment, the ZEW index, surged more than expected in October. Institutional investors confidence in the robust German economy apparently dispelled fears of a US default.
In the month of October, the mood among German institutional investors had brightened, which was reflected by a 3.2-point jump in the ZEW index, the Mannheim-based Center for European Economic Research (ZEW) said.
ZEW's investor sentiment index climbed to 52.8 points in the month, the institute reported, beating a forecast by analysts who had predicted the indicator to remain stable in a poll made earlier.
“The financial market experts remain optimistic. At present a greater impact of the debate on the debt ceiling in the United States is not visible,” said ZEW President Clemens Fuest.
The ZEW reading for October was the highest since April 2010, underlining strengthened prospects for the German economy, which was in robust shape, ZEW said.
The investors polled by ZEW, however, assessed the current economic situation slightly less favorably than future prospects. ZEW's sub-index measuring current developments, therefore, dropped slightly by 0.9 points to 29.7 points.
uhe/hc (AP, AFP, dpa)