ZEW Expectations and Current Conditions Rise

GERMANY SEP ZEW ECONOMIC SENTIMENT +77.4; AUG +71.5

GERMANY SEP CURRENT CONDITIONS -66.2; AUG -81.3

• The ZEW Expectations increased by 5.9pt in Sep, beating market expectations of a downtick to 70.0,. It is the highest level since May 2000.
• The ZEW Current Conditions recovered further as well, rising by 15.1pt to the highest level since Mar, beating forecasts projecting an increase to -72.0.
• The report notes that financial experts continue to expect a significant recovery of the German economy and not even rising Covid-19 cases nor the unsuccessful Brexit talks could dampen economic sentiment.
• However, the outlook for the banking sector remains muted as experts anticipate a rising number of loan defaults int he coming months.
• Economic Sentiment in the Eurozone improved to 73.9 in Sep, up 9.9pt, while the current conditions increased 8.9pt to -80.9.