The ZEW Center for European Economic Research in Mannheim reported on Tuesday that its index of investor confidence in Germany was growing in September for the second consecutive month, as ECB bond buying program supported speculations that European debt crisis can be resolved soon. German ZEW index of investor confidence increased to minus 11.5 last month, compared to a reading of minus 18.2 in August. Economists, however, expected that investor confidence would decrease more, with the index equal to minus 14.6.
‘The improvement was primarily driven by investor relief at the ECB's unlimited bond-purchase program. However, it also points to a soft landing for the German economy. The outlook is more subdued, but we won't have a recession,' said senior European economist at ING Group in Brussels, Carsten Brzeski.