Ger­man in­vestor sen­ti­ment rises

The Myanmar Times - - International Business -

IN­VESTOR con­fi­dence in Ger­many re­bounded slightly in Au­gust, as the shock over Bri­tain's vote to leave the Euro­pean Union be­gan to wear off, a lead­ing sur­vey showed.

The in­vestor con­fi­dence in­dex cal­cu­lated by the ZEW eco­nomic in­sti­tute gained 7.3 points to stand in pos­i­tive ter­ri­tory at 0.5 points in Au­gust, re­cov­er­ing from a mas­sive 26-point slump in July that had brought the in­dex to mi­nus 6.8 points.

The in­dex shows a “re­cov­ery some­what from the Brexit shock”, said the in­sti­tute's pres­i­dent Achim Wam­bach.

“As be­fore, po­lit­i­cal risks within and out­side of the Euro­pean Union are weigh­ing on an op­ti­mistic eco­nomic out­look for Ger­many. In ad­di­tion, there are fur­ther un­cer­tain­ties with re­gards to the abil­ity of the EU banking sec­tor to with­stand shocks,” he added in a state­ment.

Bri­tain sent fi­nan­cial mar­kets plung­ing over its ref­er­en­dum on June 23 in which 52 per­cent of the pop­u­la­tion voted to leave the EU.

In a sign that in­vestor fears are eas­ing, the ZEW's sub-in­dex mea­sur­ing fi­nan­cial mar­ket play­ers’ view of the euro­zone econ­omy showed a sharp im­prove­ment, jump­ing 19.3 points to 4.6 points.

Their as­sess­ment of Ger­many’s cur­rent eco­nomic sit­u­a­tion was like­wise more pos­i­tive, ris­ing by 7.8 points to 57.6 points. But an­a­lysts struck a note of cau­tion.

Cap­i­tal Eco­nomics an­a­lyst Jen­nifer McKe­own pointed out that Au­gust’s re­cov­ery has not re­versed the sharp fall in July. The key in­dex fell below her ex­pec­ta­tion of a rise to 5 points. –

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