German investor morale brightens in October – ZEW

FILE PHOTO: Bull and bear symbols in front of the German stock exchange in Frankfurt, Germany, February 12, 2019. REUTERS/Kai Pfaffenbach Acquire Licensing Rights

BERLIN, Oct 17 (Reuters) – German investor morale improved more than expected in October, the ZEW economic research institute said on Tuesday, as market experts forecast a further decline in inflation.

The institute’s economic sentiment index rose to -1.1 points from -11.4 points in September.

Analysts polled by Reuters had pointed to an October reading of -9.3.

« It seems that we have passed the lowest point, » ZEW president Achim Wambach said.

With inflation rates expected to decrease further, three-quarters of respondents anticipated stable short-term interest rates in the euro zone, according to the survey.

Factors such as the Israel-Hamas conflict – cited by some respondents as a reason for revising their growth forecasts downward – had only limited impact on the overall more optimistic outlook, Wambach said.

The assessment of the economic situation in Germany has stabilised, falling by only 0.5 points to minus 79.9 points, the institute said.

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