Economic sentiment index 1.8%, demonstrably stronger than median forecast of -7.0.

Current conditions 81.5, better than median forecast of 75.0

EUR/USD rallies back above 1.3600, presently at 1.3610.

ZEW says

  • Positive development of German labour market has stimulated domestic demand
  • Current situation in Germany exceptionally good
  • No reason for overoptimism with respect to German economic development next year

ZEW economist:

  • Difficult to assess impact of Ireland crisis
  • For this survey, no significant effect from Ireland yet, as most answers came in before crisis intensified
  • Strongest change in external situation is that investors view US situation more positively
  • Sees increase in sentiment for private consumption, provate investment
  • Euro appreciation, second banking crisis potential problems for economic sentiment
  • Most of the risk of Ireland should be priced in already by investors