German investor confidence rose again slightly in November as governments and central banks stepped up efforts to fight the turmoil on financial markets. The ZEW Center for European Economic Research index of investor and analyst expectations increased to minus 53.5 from minus 63 in October. The index reached minus 63.9 in July, the lowest on record. As can be seen in the chart below, this increase is rather relative, and in historic terms investor confidence remains at pretty low levels.
Germany's benchmark DAX share index rebounded from a three- year low last month and interbank lending rates in Europe have now fallen to their lowest level since February folowing the central bank decisions to injected cash into the financial system. Also Chancellor Angela Merkel's Cabinet agreed on a stimulus package worth 50 billion euros ($64 billion) on Nov. 4.
Still, investor sentiment remained negative for a 16th month in November, suggesting pessimists outnumber optimists in the survey. The indicator's long-term average is 27.1, according to the ZEW. A gauge measuring investors' assessment of the current situation fell to minus 50.4 from minus 35.9 in October.
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