Investor morale jumps in Germany
By Abigail Townsend
Date: Tuesday 17 Jan 2023
(Sharecast News) - Investor sentiment bounced back in Germany, a closely-watched survey suggested on Tuesday, beating expectations.
The January ZEW Indicator of Economic Sentiment came in at 16.9, up from -23.3 in December and well above consensus for -15.0. It is the first time since February 2022, when Russia invaded Ukraine, that the indicator has been in positive territory, and the biggest month-on-month increase since April 2020.
The index for current economic conditions also strengthened, though it remains firmly in negative territory, nudging ahead 2.8 points to -58.6. Consensus had been for -58.0.
ZEW president Achim Wambach said the more favourable situation on the energy markets, alongside prices caps introduced by the German government, had boosted sentiment.
He continued: "In addition, export conditions for the German economy are improving due to China's lifting of Covid restrictions. Accordingly, the earnings expectations of the export-orientated and energy-intensive sectors have gone up significantly.
"The prospect that the inflation rate will continue to fall has brightened expectations for the consumer-related sectors."
Data released by the Federal Statistical Office on Tuesday showed German inflation easing, after the annual consumer price index fell to a four-month low of 8.6% in December, from 10.0% in November.
Melanie Debono, senior Europe economist at Pantheon Macroeconomics, said: "The increase in the ZEW headline was in line with the increase in equities so far this month, and the jump in the Eurozone Sentix reported last week. It suggests that investors look for a better six months ahead than previously."
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN