Trade truce lifts German investor morale to highest since 2015

• A truce in the U.S.-China trade dispute has left German investors at their most optimistic since mid-2015, a leading survey showed, but its compiler cautioned that the growth outlook for Europe’s dominant economy remains subdued.
• Economic sentiment among investors rose to 26.7 in January from 10.7 in December, according to Tuesday’s ZEW research institute survey - its highest reading since July 2015 and well above a forecast of 15.0.
• ZEW President Achim Wambach said the better mood was mainly due to last week’s Phase 1 trade agreement between Washington and Beijing. Their 18-month conflict had dampened global growth and increased business uncertainty.
• German growth slowed last year to 0.6%, its weakest since 2013, as export-dependent manufacturers were hit by lower foreign demand and trade conflicts triggered by U.S. President Donald Trump.
• This gives rise to the hope that the trade dispute’s negative effects on the German economy will be less pronounced than previously thought as The United States and China are among Germany’s most important export markets.

(Source: Reuters)