German economic sentiment stronger in March - ZEW

Tuesday, 22. March 2016 11:24

The Economic Sentiment indicator for Germany increased in March by 3.3 points and stood at 4.3 points, a significant rise when compared to February. The long-term average is 24.5 points, said data from survey by the Centre for European Business Research (Zentrum für Europäische Wirtschaftsforschung, or ZEW) published on Tuesday.

The assessment of the current situation in Germany is worsening, which is indicated in a decrease by 1.6 points, to put the index at 50.7 points.

The economic development of the Eurozone has weakened, according to financial market experts surveyed by ZEW. The Indicator of Economic Sentiment for the Eurozone fell by 3.0 points to a reading of 10.6 points. After the loss of 3.8 points in March 2016, the indicator for the current situation in the euro area has fallen to a value of 11.8 points below zero.

"The uncertainty associated with the future economic development of important emerging economies, with the development of the oil price and with the external value of the euro continues to call for caution. Apparently, the renewed move of the ECB [European Central Bank] to considerably ease its monetary policy has not had a substantial effect on economic sentiment", said Professor Sascha Steffen, the head of the ZEW Research Department "International Finance and Financial Management".

In Frankfurt, the main DAX index rolled down 0.48% to 9,901 points at 11:23 a.m. CET. RWE AG, Merck KGAA and Volkswagen AG were leading the advancers, while the Deutsche Bank AG and Vonovia SE were the biggest decliners.

The euro was 0.36% weaker against the U.S. dollar, 0.21% versus the Swiss franc and 0.61% compared to the Japanese yen. The European currency rose 0.26% compared to the fellow EU currency of U.K. pound at 11:24 a.m. CET.

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