ZEW: "Not A Clear Upswing"

The ZEW Indicator of Economic Sentiment for Germany decreased by 3.2 points in January 2010. The indicator now stands at 47.2 points after 50.4 points in the previous month. The development of the indicator suggests that the surveyed financial market experts expect the German economy to recover only at a slow rate within the next six months, the German ZEW Institute reports. European stock markets fall.

“The assessment of the financial market experts suggests that we will see an economic recovery in 2010 at best, but not a clear economic upswing. The way out of the recession is burdensome and long.”

Wolfgang Franz

(Aritcle in English, link to ZEW press release)

The European stock markets fall sharply after the publishing of the latest ZEW Index from the German Center for Economic research, ZEW. The Euro weakens angainst Dollar, pressing the price of oil and other commodities lower.

The ZEW Indicator of Economic Sentiment for Germany decreased by 3.2 points in January 2010. The indicator now stands at 47.2 points after 50.4 points in the previous month.

This value is still well above the indicator’s historical average of 27.1 points, the ZEW Institute point out in a press release.

The development of the indicator suggests that the surveyed financial market experts expect the German economy to recover only at a slow rate within the next six months. According to the experts, the automobile and consumption sector is likely to develop downwards in the next half year. Business expectations for the German machinery sector, in contrast, considerably improved this month.

“The assessment of the financial market experts suggests that we will see an economic recovery in 2010 at best, but not a clear economic upswing. The way out of the recession is burdensome and long”, says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

Press release here.

Stock markets drop

Most European stock Markets drops sharply after the release of the ZEW survey.

The Euro weakens agains most currecies, as Dollar strengthens, pressing the price of commodities like oil, gold, etc. lower.

European market snap shots at noon, local time.

(Yellow line: Relative Strength Index. Red line: On-balance Volume Indicator)

DAX Index (Frankfurt):

EUR/USD:

USD/NOK:


GOLD:


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