A survey of analysts and fund managers in Germany indicates growing confidence among the financial community about the health of the eurozone's largest economy. The ZEW research institute said its economic expectations index rose for the sixth consecutive month to 21.3 points in June from 18.7 in May, well ahead of the rise to 19.5 points expected. The institute, whose index is seen as a forerunner of the important Ifo survey, said the rise in the index reflects hopes that the recent European Central Bank interest rate cut will provide a positive impulse for the German economy.
Elsewhere, however, another of Germany's six leading economic research institutes, the HWWA, said it expects the economy to stagnate this year, after previously forecasting gross domestic product growth of 0.7pc. The German government expects the economy to grow by 0.75pc. There was also negative news from the business community, with a survey by the DIHK trade association showing that business confidence fell to its lowest in a decade this month. The share of managers who expect business to get worse increased to 42pc in June from 40pc in in February. //www.fxcentre.com