German investor sentiment improves in February - ZEW

German investor sentiment improved more than expected in February amid expectations that Covid restrictions would be eased, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.

The headline ZEW investor expectations index rose to 54.3 from 51.7 in January, coming in ahead of expectations for a reading of 53.5. Meanwhile, the current situation index improved to -8.1 in February from -10.2 the month before.

ZEW President Professor Achim Wambach said: "The economic outlook for Germany continues to improve in February despite growing economic and political uncertainties. Financial market experts expect an easing of pandemic-related restrictions and an economic recovery in the first half of 2022.

"They still expect inflation to decline, albeit at a slower pace and from a higher level than in previous months. Consequently, more than 50 per cent of the experts now predict that short-term interest rates in the euro area will rise in the next six months."