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ZEW index soars despite Brexit risks

ZEW index soars despite Brexit risks
  • Mona Dohle
  • 21 June 2016
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The German ZEW index for the six month economic outlook increased by 12.8bsp to 19.2bsp, suggesting growing optimism among German investors, despite heightened geopolitical risks.

The monthly index, conducted among 202 analysts and institutional investors , revealed that the assessment of the current situation in Germany improved slightly, by 1.4 bsp to 54.5 bsp compared to the previous month.

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While investors continued to be bearish in their assessment of the current situation across the Eurozone, with the index for the current climate declining by -0.8bsp to -10.0 bsp, the six month outlook for the Eurozone improved by 3.4bsp to 20.2bsp compared to the previous month.

“The more upbeat assessments of financial market experts bears testimony to a basic level of trust in the resilience of the German economy. Nevertheless, the macroeconomic context remains challenging. Besides the modest global growth outlook, the UK referendum on remaining in the EU has generated further uncertainity” comments ZEW president Achim Wambach.

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