Ger­man in­vestor con­fi­dence soars

The Myanmar Times - - International Business -

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. –

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