IFO Sentiment data for Januray released today registered better than anticipated with the Business Climate sentiment index at 83, up from a revised 82.7 in December. Current Assessment was down 2 to 86.8 (still significantly higher than anticipated) and Expectations were at 79.4, up from a revised 76.9 reading for December and much better than economists had forecasted.
The slight uptick in sentiment indicates a less-than-toxic outlook for Germany. Chancellor Angela Merkel agreed this month to spend €80 Billion ($105 Billion) over two years to overturn the country’s worst recession since WWII.
We are currently neutral on Germany’s Equity market.