German investor confidence hits three-year high

German investor confidence unexpectedly rose to a three-year high in March, suggesting Europe's largest economy will return to growth. 

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to 48.5 from 48.2 in February, the highest since April 2010. 

Economists forecast a decline to 48.1, according to the median of 40 estimates in a Bloomberg News survey. 

The Bundesbank predicts the economy will expand in the current quarter after contracting 0.6 per cent in the final three months of last year. 

Business confidence improved for a fourth month in February. Still, political turmoil in Italy and the prospect of a bank run in Cyprus are spooking financial markets and threatening to derail an economic recovery in the euro area, Germany's biggest export market.

Read more: German investor confidence hits three-year high - European Economic News | EU Budgets, Trends & Spending | Irish Tim - Tue, Mar 19, 2013

German investor confidence takes a steep dive

German investor confidence plummeted in June, marking its steepest fall in nearly 14 years amid ongoing eurozone woes.

The business expectations index by the Center for European Economic Research (ZEW) plunged 27.7 points to minus 16.9 points this month, logging the biggest drop in confidence since October 1998.

"The escalation of the situation in the Spanish banking sector contributed to the sharp drop in the indicator," the president of the Mannheim-based think thank, Wolfgang Frank, said in a statement on Tuesday.

Read more: German investor confidence takes a steep dive | Business | DW.DE | 19.06.2012