Investing.com - German economic sentiment improved more than expected in October, bolstering optimism over the motor of the euro zone economy, industry data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment rose to 6.2 this month from September’s reading of 0.5. Analysts had expected the index to increase to 4.3 in October.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
The Current Conditions Index rose to 59.5 this month from 55.1 in September, above below expectations for an increase to 55.5.
Additionally, the index of euro zone economic sentiment increased to 12.3 in October from 5.4 a month earlier. Consensus was looking for an increase to 6.3.
ZEW president professor Achim Wambach commented that the improvement in sentiment reflected a sign of relatively robust economic activity in Germany.
“However, positive impulses from industry and exports should not distract from existing political and economic risks,” Wambach warned.
“In particular, the risks concerning the German banking sector are currently a burden to the economic outlook,” he added, evidently referring to recent concern surround Deutsche Bank (DE:DBKGn) and the fine from the U.S. Department of Justice.
EUR/USD was trading at 1.1114 from around 1.1115 ahead of the release of the data, while EUR/GBP was at 0.9043 from 0.9046 earlier.
Meanwhile, European stock markets were trading mixed. The benchmark Euro Stoxx 50 slipped 0.15%, Germany's DAX gave up 0.17%, France’s CAC 40 inched up 0.06%, while London’s FTSE 100 edged forward 0.01%.