German investor sentiment climbs higher: ZEW
German financial market confidence gained ground in December, a survey showed on Tuesday, as Europe's biggest economy heads for record growth in 2010.
The ZEW economic expectations indicator, based on a survey of analysts and institutional investors, rose to 4.3 points from 1.8 points in its previous reading, indicating that investors were upbeat going into 2011.
"In October, industrial production and incoming orders developed favourably in Germany and have thus been strengthening economic recovery," a ZEW statement said.
The German central bank has forecast economic growth of 3.6 percent this year, which would be the best result since Germany's reunification in 1990.
"After a strong increase in the previous month, economic expectations for Germany seem to stabilise in December," a statement quoted ZEW president Wolfgang Franz as saying.
"Besides impulses from export activities, economic stimulus is also expected from domestic demand, supported by positive labour market development and low real interest rates," he added.
Capital Economics economist Ben May said: "It seems that investors see the recent upbeat global data and the weaker euro as more than offsetting the negative effects of the eurozone fiscal crisis on the German economy."
Although Germany and some other core eurozone countries profiting from strong economies, countries on the eurozone's southern rim are still struggling to deal with excessive public deficits and massive debts.
© 2010 AFP