FRANKFURT – A leading measure of investor confidence in Germany is expected to fall for a second straight month as the country’s leading equity index remains solidly in the red versus mid-August.
An analysts’ poll predicted that the forward-looking economic sentiment reading from a survey conducted by Germany’s ZEW economic institute will fall to 25.0 points from last month’s 34.7.
The institute’s current conditions indicator is expected to stay in negative territory—its home since December 2021—with an improvement to -65.0 from -68.6 in August.
Financial market experts need only look to the performance of German blue chips for an indicator of sentiment: The Dax 40 index is down more than 2% on the month. However, it has risen over 19% this year, outpacing the 12% rise in the S&P 500.
Nomura said it expects the ZEW’s forward-looking reading to drop to 19.2, well below the market estimate of 25.0.
Waiting on Berlin
More halcyon days are ahead for Germany, according to Deutsche Bank, with massive investments in the pipeline for domestic infrastructure and defence. “We remain optimistic that next year, the now clearly expansive fiscal policy will increasingly unfold and drive the domestic economy.”
Plans for hundreds of billions of euros in spending out of Berlin have failed to allay concerns about the present, Sentix said in a note: “How and when will Berlin finally lend a helping hand to the ailing German economy?”
Its investors’ poll showed further concerns about Europe’s largest economy: the September headline reading dropped for a second straight month to its lowest mark since April, with measures for the present and the next six months both declining.
“There are few constructive proposals coming from Berlin,” Sentix warned.
And while investors may be somewhat hopeful following August’s surprisingly strong improvement in business sentiment, the most recent collapse of the French government is undoubtedly muting optimism among investors in neighbouring Germany.
- Forward-looking measure seen at 25.0 points (prev 34.7)
- Current conditions projected at -65.0 (prev -68.6)
- Data due Tuesday at 09:00 GMT / 11:00 CET
By Eric Culp, European Editor
LiveSquawk News
@eculp.bsky.social
@EricCulpLS
15 September 2025 | 09:05 GMT
FRANKFURT – A leading measure of investor confidence in Germany is expected to fall for a second straight month as the country’s leading equity index remains solidly in the red versus mid-August.
An analysts’ poll predicted that the forward-looking economic sentiment reading from a survey conducted by Germany’s ZEW economic institute will fall to 25.0 points from last month’s 34.7.
The institute’s current conditions indicator is expected to stay in negative territory—its home since December 2021—with an improvement to -65.0 from -68.6 in August.
Financial market experts need only look to the performance of German blue chips for an indicator of sentiment: The Dax 40 index is down more than 2% on the month. However, it has risen over 19% this year, outpacing the 12% rise in the S&P 500.
Nomura said it expects the ZEW’s forward-looking reading to drop to 19.2, well below the market estimate of 25.0.
Waiting on Berlin
More halcyon days are ahead for Germany, according to Deutsche Bank, with massive investments in the pipeline for domestic infrastructure and defence. “We remain optimistic that next year, the now clearly expansive fiscal policy will increasingly unfold and drive the domestic economy.”
Plans for hundreds of billions of euros in spending out of Berlin have failed to allay concerns about the present, Sentix said in a note: “How and when will Berlin finally lend a helping hand to the ailing German economy?”
Its investors’ poll showed further concerns about Europe’s largest economy: the September headline reading dropped for a second straight month to its lowest mark since April, with measures for the present and the next six months both declining.
“There are few constructive proposals coming from Berlin,” Sentix warned.
And while investors may be somewhat hopeful following August’s surprisingly strong improvement in business sentiment, the most recent collapse of the French government is undoubtedly muting optimism among investors in neighbouring Germany.
Additionally, the European Central Bank left its key interest rates unchanged last week, signalling that further cuts may not be coming anytime soon.
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