(menafn – ecpulse)
The sentiment remained fragile today while the euro remained weak against the U.S. dollar after the German upbeat confidence data as markets are still focused and concerned over Spain which seems to be following Greece's steps into the debt trap that could trigger the collapse of the euro and the entire European Union.
The German business confidence improved unexpectedly in March, reaching the highest record seen since August 2011, the thing that eased downside pressures forced on Germany, the largest economy in the euro-area region, with expectations German growth might pick up soon, yet fears are still threatening the euro-area region as Spain might fall soon in case European leaders stood still and did nothing to prevent the economic conditions from spreading further.
The German IFO Institute clarified today that the confidence-linked business survey showed that German executives expects Germany to be more competitive in March, where the survey showed the level of confidence improved to 109.8 from the previous and the expected 109.6.
In addition IFO Survey also showed that the confidence in the current situation lingered at the highest level recorded since September, where the index remained steady at 117.4, beating median estimates of 117.0.
Moreover, the IFO Institute survey for expectations reflected better confidence in Germany, where businesses circumstances are expected to improve further in April as the index inclined to 102.7 from the previous of 102.4.
The European common currency remained weak after the news, trading around 1.3200 compared with the opening of 1.3270 on fears Spain might fuel the debt crisis to intensify and spread widely again as the nation is unable to control the widening budget and deficit, reflecting rising threats that larger economies and now in the danger zone.
As of 04:12 EST, the German DAX was 0.22% or 15.05 points higher, trading currently around 7010.67 point, led by the basic material sector, which added so far 0.62%. On the other hand, consumer services sector shed the most today, cutting so far 0.46%.