German investor sentiment rises on hopes of economic resilience; beats market consensus

Germany’s investor sentiments in June rose on hopes of economic resilience in the Eurozone’s largest economy, according to a survey by a private think tank, despite a weak global condition in the wake of Brexit referendum, scheduled to take place on June 23.

Mannheim-based ZEW said its monthly survey showed a rise in its economic sentiment index to 19.2 points in June from 6.4 the previous month, far below that compared with the Reuters consensus for a fall to 4.7. A separate gauge of current conditions rose to 54.5 points from 53.1 in May against Reuters forecast of 53.0 for the same.

"The improvement of economic sentiment indicates that the financial market experts have confidence in the resilience of the German economy," said Achim Wambach, President, ZEW.

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.

However, apart from the EU referendum on Britain’s membership in the common currency zone, not much remains a concern for the German economy. Both consumer and investor sentiments seem to be recovering. The ZEW monthly survey was based on a sample of 202 analysts and investors conducted during June 6 to June 20.