Despite the outcome of the Italian refeendum and the election of Donald Trump as US president, economic sentiment among German investors has improved significantly compared to the previous month, according to the latest ZEW index, conducted among 204 analysts and institutional investors.
The assessment of the current economic climate in Germany increased by 4.7 basis points month on month to 63.5 basis points, while views on the European Investment climate increased by 1 basis point to -8.3.
Meanwhile, the six-month economic forecast for the German economy remained stable at 13.8 basis points while the outlook for the Eurozone improved by 2.3 basis points to 18.1 basis points.
Christian Lips, analyst at NordLB comments on the latest results: “Both markets and survey respondents seem to ignore significant short-term risk factors. This could be due to our experiences of the recent past, with neither Brexit nor Donald Trump’s election victory leading to the anticipated crash on financial markets. Italy’s uncertain future following Renzi’s resignation appears to have been received with a shrug of shoulders by market participants and turned out to be a non-event” he argues.