ZEW German investor economic sentiment indicator likely rose in November

The ZEW German investor economic sentiment indicator is expected to have risen solidly in November. According to a Societe Generale report, the sentiment indicator is likely to have increased to 12.9 points from 6.2. This would be the second highest in 2016.

In recent months, financial markets have found a stronger footing, and given the positive equity market impact on Donald Trump’s victory in the U.S. Presidential election, there is a scope for the ZEW to rebound more strongly and gain back some of the sentiment that was lost since the Brexit referendum, stated Societe Generale.

This should also suggest that the ZEW begins giving a similarly positive message regarding the future economic activity in Germany as other surveys currently do. But given that the policy uncertainty is high in Germany, further volatility would likely follow, in spite of the very solid economic fundamentals in the nation.

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