Investing.com – German economic sentiment improved unexpectedly in December, rebounding from the lowest level since November 2008, data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment improved by 1.4 points to minus 53.8 in December, up from last month’s three-year low of minus 55.2. The index rose for the first time in ten months.
Analysts had expected the index to deteriorate by 0.6 points to minus 55.8 in December.
The assessment of the current economic situation in Germany remains positive but has deteriorated for the fifth time in a row. The corresponding indicator has dropped by 7.4 points to 26.8 points in December.
Meanwhile, economic sentiment in the euro zone rose by 5.0 points in December to minus 54.1 from minus 59.2 in November. Economists had expected euro zone economic sentiment to decline by 1.2 points to minus 60.3.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Commenting on the report, ZEW President Wolfgang Franz said, “Apparently, the financial market experts expect the economic activity to slow down, but not to plunge during the next six months.”
He added that, “The decisions of the latest EU summit may have improved the experts’ expectations. Subject to a consensus on crucial details, these decisions are an important step towards an efficient institutional framework for the currency union.”
Following the release of that data, the euro erased losses against the U.S. dollar to trade modestly higher, with EUR/USD easing up 0.04% to hit 1.3194.
Meanwhile, European stock markets were up. The EURO STOXX 50 rose 0.5%, France’s CAC 40 added 0.2%, Germany's DAX climbed 0.45%, while the FTSE 100 advanced 0.3%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment improved by 1.4 points to minus 53.8 in December, up from last month’s three-year low of minus 55.2. The index rose for the first time in ten months.
Analysts had expected the index to deteriorate by 0.6 points to minus 55.8 in December.
The assessment of the current economic situation in Germany remains positive but has deteriorated for the fifth time in a row. The corresponding indicator has dropped by 7.4 points to 26.8 points in December.
Meanwhile, economic sentiment in the euro zone rose by 5.0 points in December to minus 54.1 from minus 59.2 in November. Economists had expected euro zone economic sentiment to decline by 1.2 points to minus 60.3.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Commenting on the report, ZEW President Wolfgang Franz said, “Apparently, the financial market experts expect the economic activity to slow down, but not to plunge during the next six months.”
He added that, “The decisions of the latest EU summit may have improved the experts’ expectations. Subject to a consensus on crucial details, these decisions are an important step towards an efficient institutional framework for the currency union.”
Following the release of that data, the euro erased losses against the U.S. dollar to trade modestly higher, with EUR/USD easing up 0.04% to hit 1.3194.
Meanwhile, European stock markets were up. The EURO STOXX 50 rose 0.5%, France’s CAC 40 added 0.2%, Germany's DAX climbed 0.45%, while the FTSE 100 advanced 0.3%.