Confidence among investors in Germany eased last month after the appreciation of the euro dampened sentiment about the potential strength of the recovery in the eurozone's largest economy. The ZEW research institute said its German economic expectations index of 350 analysts fell 0.6 points in October from August to plus 60.3. The consensus forecast from economists was for the index to rise to 63.0 points and the unexepected decline was the first in 10 months. The indicator reflects the difference between the share of analysts that are optimistic and the share of analysts that are pessimistic for the expected economic development in Germany in six months.
Friedrich Heinemann, head of the ZEW's macroeconomics division, said the rise of the euro over the past month was "one of the big topics" that impacted on the survey. The euro rose above USD1.18 from USD1.09 at the beginning of September, rebounding from an 8pc drop over the previous 12 weeks. Heinemann added that the decline in the index from September's 14-month high indicated that a "significant minority" of financial experts still distrust indications of an upturn in Europe. //www.fxcentre.com