German ZEW investor sentiment rises despite Brexit, COVID-19 headwinds

Investor sentiment in Germany rose unexpectedly in September, the ZEW economic research institute said on Tuesday, signaling confidence in recovery from the coronavirus crisis despite headwinds from stalled Brexit talks and rising new infections. The survey of investors' economic sentiment rose to 77.4 from 71.5 points the previous month, confounding a forecast for a fall to 69.8 in a Reuters poll.

"The ZEW Indicator has increased again, signaling that the experts continue to expect a noticeable recovery of the German economy," said ZEW President Achim Wambach. "However, the still negative outlook for the banking sector reveals fears of a rising number of loan defaults in the coming six months." A separate gauge of current conditions rose to -66.2 from -81.3 points the previous month. That compared with a consensus forecast of -72.0 points.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)