German ZEW investor economic sentiment indicator seems to have dropped slightly in December

The German ZEW investor economic sentiment indicator is likely to have moderated slightly in December. According to a Societe Generale research report, the ZEW economic sentiment indicator is expected to have dropped a tad from 13.8 in November to 13.2 in December. Stock markets have continued to rise, but policy uncertainty has also increased in the euro area that should temper expectations, said Societe Generale.

However, financial markets expectations should have room to pick up further, particularly in view of other real economy surveys still giving a picture of a much stronger view of the economy. But with policy uncertainty expected to stay high, volatility might also follow, in spite of the very strong economic fundamentals in Germany, stated Societe Generale.

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