German investors turn bullish

  @CNNMoneyInvest January 22, 2013: 10:33 AM ET
german investors bullish

Investor sentiment in Germany rose to a 32-month high in January, according to a survey released Tuesday.

The ZEW indicator of economic sentiment now stands at 31.5, marking its highest level since May 2010, said the Center for European Economic Research.

The increase suggests that investors are more optimistic about the outlook for the German economy over the next six months.

It also reflects increased confidence that the euro currency union will remain intact, the center said.

Germany is the largest economy in the euro area and the long-running debt crisis in the currency zone has taken a toll on the nation's exporters. In the fourth quarter, German gross domestic product shrank by about 0.5% as exports and investment fell.

Related: Too soon to celebrate in Davos

The improved tone in German financial markets reflects hopes that German companies will begin ramping up investments that had been delayed during the thick of the crisis last year, according to ZEW president Wolfgang Franz. But the tepid outlook for economic growth outside of Germany means demand for German-made goods will remain weak, he added.

"This suggests that the German economy will further grow at a moderate level in 2013," said Franz.

Will U.S. or Europe dominate Davos?

Investors have also been encouraged by the European Central Bank's more aggressive stance, said Ashraf Laidi, chief global strategist at City Index in London.

Laidi noted that the ZEW index's 7.6-point increase in January was the largest point gain since February 2012, when the ECB announced its second long-term refinancing operation.

The gain in January "is a fitting reflection of investor sentiment with regards to recovering market conditions, rather than improving macroeconomic dynamics," said Liadi. To top of page

Join the Conversation
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 9:12pm ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.19 -0.02 -0.09%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.36%4.24%
15 yr fixed3.39%3.26%
5/1 ARM3.36%3.27%
30 yr refi4.34%4.22%
15 yr refi3.38%3.24%
View rates in your area
Find personalized rates:
Rate data provided
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.