Posted March 20, 2013 by Andrew Kyros in Business

European Market Shows Confidence; Goes High in Value

The confidence of German investor is suddenly on a high in comparison to the last three years, showing positive signs of growth in the European economic market.

As per the statement made by the ZEW Center for European Economic Research which is based at Mannheim, it is estimated by analysts that in the future six months there will be advancement and increase of the economic scenario, an increase of 48.5 percent from 48.2 percent in the month of February.  It is commented to be the highest rise since the time of April 2010 even after there was estimation from analysts about a decline of around 48.1, as per the survey and estimation of 40 analysts of Bloomberg News.

It is predicted by Bundesbank that the economic market will go higher with expansion in the present quarter of the year, in contrast to the 0.6 percent of last three months of 2012. The confidence about trade growth is going higher for the month of February. However, there are still several threats and speculations about the market situation after the political problems of Italy and the Cyprus operation that can hamper the financial market and its recovery process in association to the German export market.

“I feel that there is enough positive scope for the first quarter to improve in regions of Germany, but I think the second quarter needs to be more carefully observed” states Anatoli Annenkov, the head economist and analyst at the Societe Generale, placed at London. He adds that there are after effects of the Italian political turmoil along with the Cyprus development which can play in confidence.

In the month of February, the measurement of ZEW and its present situation got a rise of 13.6 percent from its previous value of 5.2 percent. After this report, the valuation of euro got a high which later dropped by 0.1 percent in today’s market.

In accordance to the survey of ZEW, average of 13 percent of 245 responses was already received when the news of extra charges on Cyprus bank depositors got released. This declaration resulted in a stiff drop of the euro value, thus resulting in tumble of the stocks, shares and commodity market. However, the Moody’s Investors Service stated in its report that the Cypriot extra charge on depositors will affect the European market negatively.

Ewald Nowotny, the member of European central bank urged that the government should find a quick and speedy solution in order to secure the bailout situation of Europe, thus preventing the uncertainty and freezing of investment.

The car sales market of Europe, including Volkswagen and Continental AG, also witnessed a drop, even though estimation showed a growth in European car sale record.

Andrew Kyros

Andrew Kyros joined Market Voice News as a general assignment reporter. Andrew received a national Edward R. Murrow for spot news award and the regional Associated Press award for best newscast. Andrew attended Riverview High School near Coshocton, and graduated from Ashland College in Ashland, Ohio with a Bachelor of Arts degree in Communications. Andrew is our senior analyst and investigative reporter at The Market Voice News, Andrew has also reported on corporate corruption and related news.