- Carsten Brzeski, senior economist at ING Group
An index of German investor confidence unexpectedly rose to 23.4 in April from 22.3 in March, said the ZEW Centre for European Economic Research on Tuesday. ZEW sentiment is based on a survey conducted among 350 German investors and analysts, who are asked to rate the six-month economic outlook.
"Today's ZEW index is good news but it should be taken with a pinch of salt," said Carsten Brzeski, senior economist at ING Group in Brussels. "Yes, the economy avoided falling off the cliff, but it is still flirting with recession."
In a separate report, the Eurostat said eurozone consumer prices edged higher by more than expected in March. Inflation rose 2.7 per cent from the same period last year.
"This is consistent with our 2012 average forecast of 2.4 percent, which is in line with the ECB's forecast, meaning that the governing council will continue to have to accept a higher rate of inflation temporarily," said Gustavo Bagattini, European economist at RBC Capital Markets.
© Dukascopy Bank