A closely watched survey shows German investors have partially recovered from “Brexit shock” but that concerns remain. According to the ZEW Center for European Economic Research, the index rose by 7.3 points from July to 0.5 points in August. The ZEW Indicator or Economic Sentiment for the Eurozone rose 19.3 points to 4.6 points in August.
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While the ZEW survey reflects the assessment of financial analysts, most economic forecasters prefer to look at business surveys-such as the purchasing managers index and the Ifo survey-to gauge the underlying strength of an economy.
In August, the ZEW Indicator of Economic Sentiment for Germany recovers in August. “As before, political risks within and outside of the European Union are weighing on an optimistic economic outlook for Germany”, he said in a statement, adding that there were “further uncertainties with regards to the ability of the EU banking sector to withstand shocks”.
The ZEW commented that expectations were recovering somewhat after the surprise United Kingdom decision to leave the European Union (EU), though there was still uncertainty surrounding the resilience of the EU banking sector.
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The index increased 0.32% or $59.58 on August 15, hitting $18636.05. It has underperformed by 7.85% the S&P500. Dow Jones Industrial Average (INDEXDJX:.DJI) has risen 6.00% since July 17, 2016 and is uptrending.
