Germany Just Threw Sand In The Face Of The Rest Of The Eurozone

Andrea Merkel

While the UK is struggling with inflation and much of the eurozone remains mired in sovereign debt crisis, Germany continues to surge.

Confidence over the next 6-months just rose to 15.4, an 11.1 month-over-month jump, according to the latest ZEW survey.

That may be below the historical average of the ZEW, but it’s a significant beat in terms of the expected 8 point jump.

But why is this happening? The ECB’s low interest rates continue to spur investment in Germany and spending, according to ZEW.

With the inflation threat rising, it may be wise to look out beyond that 6-month horizon, when the ECB may raise rates.

Nevertheless, the German Dax is higher on today’s news, up over 0.8%.


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