(MENAFN– ecpulse) Investors are eagerly anticipating August German IFO sentiment data on Wednesday after yesterday’s solid ZEW signaled Eurozone`s economic recovery is on track to stabilization.
The German IFO business climate is unlikely to show a surprise Wednesday and is expected to rise for a second month in a row after it reached the highest level since April 2012 last month.
The IFO index, which polls executives in Europe’s largest economy, will likely show business mood across Europe’s largest economy grew marginally in December.
- IFO Business Climate Index probably advanced to 109.5 vs. 109.3.
- IFO Current Assessment Index likely increased to 112.5 from 112.2.
- IFO Expectations Index expected to be have climbed to 106.5 form 106.3.
On Tuesday, another survey showed investor sentiment beat expectations in December and hit its highest level since April 2006, with the improving Eurozone outlook likely contributing to the rise.
German investor confidence resumed its advance for a fifth straight month in December, reaching its highest level since October 2009, adding to hopes that recovery in Europe’s biggest economy may gain momentum again in the last quarter.
The ZEW Center for European Economic Research in Mannheim said Tuesday that its key index of economic expectations for Europe`s largest economy rose to 62.0 from 54.6 in November, above the median forecast of 55.0. The reading gauges investor sentiment of the economy for the next six months.
The German economy slowed in 2012 and early 2013 after steaming ahead during the early years of the euro zone crisis but bounced back in the second quarter.
Growth was slower but still solid in the third quarter and economists expect a similar performance for the final three months of the year.
Upbeat data today would definitely stimulate euro gains. The euro would definitely pick up further against major currencies if Wednesday`s data beat analysts` median estimates.
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