German investor confidence rebounds from August plunge

Confidence among German investors beat expectations Tuesday with a strong rebound in a monthly survey, as Europe's largest economy stays in robust health and fears over a strong euro recede.

The ZEW institute's monthly barometer -- which measures financial players' expectations for the coming months -- leapt from 10 to 17 points in September, outstripping the 13.5 points predicted by analysts surveyed by Factset and almost recovering July's level of 17.5.

"Solid growth in the second quarter, recent big increases in banks' lending business and growing investment from firms and the state" had all contributed to the good mood, ZEW president Achim Wambach said.

The German economy grew by 0.6 percent in the three months from April to June, figures released in mid-August showed, in line with the average for the 19-nation eurozone.

And unlike a recent string of white-knuckle European votes, "there seems to be no uncertainty originating from Germany's general election" slated for Sunday, Wambach added.

The rebound "may party reflect a reduction in fears about the euro", after the single currency's rise against the dollar in recent months cowed financial players, analyst Stephen Brown of Capital Economics suggested.

In a separate survey looking at the eurozone as a whole, investors were slightly more confident in the future performance of the single currency area in September than last month.

But while the picture of Germany's present economic situation brightened a little, financial professionals' view of the eurozone's current position was gloomier than in August.

The ZEW institute questioned 203 analysts and institutional investors to compile its survey.

Source: AFP