German investor sentiment improves in September
By Michele Maatouk
Date: Tuesday 15 Sep 2020
(Sharecast News) - German investor sentiment improved in September despite rising coronavirus cases and concerns about Brexit, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.
The headline ZEW investor expectations index rose to 77.4 from 71.5 in August, beating expectations for a reading of 69.8.
The current situation index improved to -66.2 in September from -81.3 the month before, versus expectations for a reading of -72.00.
ZEW President Professor Achim Wambach said: "The ZEW indicator of economic sentiment has increased again, signalling that the experts continue to expect a noticeable recovery of the German economy.
"Stalled Brexit talks and rising Covid-19 cases could not dampen the positive mood. However, the still negative outlook for the banking sector reveals fears of a rising number of loan defaults in the coming six months."
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said investor sentiment continues to tell a story of unchallenged optimism on the future.
"The increase in the headline ZEW expectations index pushed the gauge to its highest since 1999, consistent with the increase in the Sentix. This is good news, also for the economy, but it stands in contrast to wobbly economic surveys and a sustained resurgence in the virus.
"It's perfectly reasonable to ascribe high-flying investor sentiment to an iron-clad belief in the policy-put, though that now looks slightly off given last week's signal by the ECB that further stimulus is not forthcoming, at least not in the very near term."
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