German ZEW economic sentiment beats forecasts, unexpectedly spikes in June

According to the latest survey from the ZEW think-tank, German economists are feeling surprisingly upbeat about the economy despite an uncertain global backdrop. The survey of 202 analysts and investors conducted during June 6 to June 20 by ZEW showed on Tuesday an unexpected rise in the economic sentiment index to 19.2 points, up from 6.4 in the previous month. The reading beat Reuters' consensus forecast for a fall to 4.7.

Meanwhile, the index of euro zone economic sentiment also surprised with an increase to 20.2 in June from 16.8 a month earlier, settling well above forecasts for a drop to 15.3. Euro was little changed post data, largely subdued by the upcoming EU referendum, was trading at 1.1340 at 10:00 GMT.

"The improvement of economic sentiment indicates that the financial market experts have confidence in the resilience of the German economy. However, general economic conditions remain challenging. Apart from the weak global economic dynamics, it is mainly the EU referendum in Great Britain which causes uncertainty," said the think tank’s president Achim Wambach in a statement.