Who’s afraid of a Brexit? Judging from the just released ZEW index, German investors either don’t seem to believe in the prospects of a Brexit or are simply not afraid of the potential consequences. Surprisingly, the ZEW index increased to its highest level since September last year and now stands at 19.2, from 6.4 in May. The current situation component also increased, to 54.5, from 53.1 in May.
Obviously, the ZEW index is currently not the best predictor of future growth in the German economy. Nevertheless, against the background of latest market turmoil and the upcoming British referendum, German investors’ new optimism comes as a nice positive surprise.