ZEW Expectations Rose Again

GERMANY AUG ZEW ECONOMIC SENTIMENT +71.5; JUL +59.3

GERMANY AUG CURRENT CONDITIONS -81.3; JUL -80.9

• The ZEW Expectations rose 12.2pt in Aug in contrast to markets looking for another downtick to 56.0, marking the highest level since Jan 2004.
• Expectations slumped in Mar to -49.5 and improved until Jun before edged down again in Jul
• The ZEW Current conditions index eased slightly by 0.4pt n Aug, showing another strong negative reading and falling short of markets expecting an improvement to -69.3
• The report noted that hopes for a fast recovery increased and experts project to see a general recovery, especially in the domestic sectors.
• However, earnings expectations for the banking sector and insurers in the next six months remain depressed, raising concerns regarding a fast recovery.
• Economic Sentiment in the Eurozone improved to 64.0 in Aug, up 4.4pt, while the current conditions dropped 1.1pt to 89.9.