FRANKFURT – German financial market experts remained upbeat in the latest ZEW institute survey despite troubles at the country’s biggest banks.
The ZEW’s indicator of economic sentiment rose to 6.2 points in October from 0.5 points the month before. That was more than the 4.3 points expected by market analysts.
ZEW head Achim Wambach said Tuesday the uptick “is a sign of relatively robust economic activity in Germany.”
He cautioned that “risks concerning the German banking sector are currently a burden to the economic outlook.”
Germany’s biggest bank, Deutsche Bank, has seen its stock sag amid speculation it may need to raise more capital or seek government help. No. 2 bank Commerzbank is cutting 7,300 jobs.
Meanwhile Germany enjoys steady growth and a low unemployment rate of 4.2 per cent.