German’s ZEW sentiment likely to turn positive in November

November ZEW investor economic sentiment indicator for German will draw market's attention tomorrow. The indicator recorded 1.9% in October is expected to escalate to 8.4% in November for the first time in past 7 months, argues Societe Generale. 

In compare to other forward-looking indicators, the ZEW is seemed to be falling significantly in recent months. This might be because the investors are aware about weaker momentum in the emerging markets, which will affect the global demand. Analysts suspect that the PMI and the Ifo may soften slightly in the coming months.

"In November, we expect the ZEW investor economic sentiment indicator to have increased from 1.9 to 8.4, following a spell of seven consecutive months of decline. This primarily reflects the better mood in stock markets of late, with hints of further ECB action in December", argues Societe Generale.