| German ZEW economic sentiment up strongly to -21.6 in January from -53.8 in December 2011 |
| 17.01.12 12:05 | |
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The German ZEW survey (economic sentiment) improved strongly to -21.6 in January, up from -53.8 reported for December last year, thereby rising well above forecast levels (market forecast: -49.8, BarCap: -49.5). Also, the ZEW current situation component improved to 28.4 this month from 26.8 reported for last month. For the euro area, economic sentiment also rose, reaching -32.5 from -54.1 previously, while the current situation fell back to -51.4 from -44.1 reported for the previous month. Overall, the latest rebound in stock market valuations should have supported ZEW sentiment, well overcompensating for any investor concern about the ongoing strains in euro area credit markets and risks for a slowing economy. The improvement is all the more noteworthy given that the IFO index actually improved in November and December. While the latest signs given by the leading business cycle indicators provide some comfort, it should not be overlooked that the ZEW reading is still consistent with the outlook of a further fall in German real GDP growth. source: BarCap |
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