German investor confidence surges past expectations in November

German investor confidence rebounded strongly in November, figures released on Tuesday showed.

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations rose from 1.9 last month, its lowest level in a year, to 10.4 in November, beating analysts’ expectations for a 6.0 reading.

However, the sub-index tracking economic sentiment in the Eurozone declined from 30.1 to 28.3, highlighting investors in the 19-country bloc remained wary of the implications of a potential global slowdown.

The gauge monitoring confidence in the current environment slid from 55.2 to 54.4, slightly below analysts’ expectations for a 55.2 reading.

"There must be a risk that uncertainty surrounding the Paris attacks hits sentiment in the weeks or months ahead," said Jennifer McKeown, senior European economist at Capital Economics.

We maintain our forecast that German GDP growth will slow from 1.5% this year to about 1.2% in 2016, implying limited inflationary pressure even in the euro-zone’s strongest economy."