German investor confidence soars
INVESTOR confidence in Germany jumped sharply for the second month in a row in November although there are worries about Donald Trump’s election as United States president, the ZEW economic institute said.
The institute’s headline sentiment barometer hit 13.8 points, up from 6.2 points in October.
Analysts surveyed by Factset predicted the indicator would stand at 8.9 points.
“Positive economic data from the US and China” had boosted investors’ mood yet further in November, ZEW president Achim Wambach said in a statement.
But the investor survey also straddled the November 8 presidential election in the US, and “the reported expectations after the election were less positive than before”, he said.
Germany exports more goods to the US than to any other country, making it vulnerable to protectionist moves Mr Trump promised during his campaign under the motto “America First”.
Earlier on November 15, official data showed slightly weaker-thanexpected growth figures in the third quarter, weighed down by falling exports.
But the confident mood among investors “points to stronger economic growth in the coming six months,” Mr Wambach said.
Before the October bounce in morale, investor sentiment had remained at low levels in August and September in response to Britain’s vote to leave the EU. –