Investing.com – German economic sentiment rose significantly more-than-expected in January, jumping to a six month high, data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment soared to 15.4 in January, after rising to 4.3 in December.
Analysts had expected the index to rise to 6.3 in January.
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, “The currently low level of real interest rates should strengthen demand for capital equipment in Germany. Increased job security stimulates private consumption".
The report also showed that economic sentiment in the euro zone rose more-than-expected in January, jumping to 25.4, after rising to 15.5 in December.
Analysts had expected euro zone economic sentiment to rise to 17.3 in January.
Following the release of the data, the euro was up against the U.S. dollar, with EUR/USD gaining 0.89% to hit 1.3411.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 rallied 1.28%, France’s CAC 40 jumped 0.99%, Germany's DAX surged 1.03%, while the FTSE 100 was up 1.05%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment soared to 15.4 in January, after rising to 4.3 in December.
Analysts had expected the index to rise to 6.3 in January.
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, “The currently low level of real interest rates should strengthen demand for capital equipment in Germany. Increased job security stimulates private consumption".
The report also showed that economic sentiment in the euro zone rose more-than-expected in January, jumping to 25.4, after rising to 15.5 in December.
Analysts had expected euro zone economic sentiment to rise to 17.3 in January.
Following the release of the data, the euro was up against the U.S. dollar, with EUR/USD gaining 0.89% to hit 1.3411.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 rallied 1.28%, France’s CAC 40 jumped 0.99%, Germany's DAX surged 1.03%, while the FTSE 100 was up 1.05%.