EU confidence on the increase

 
City A.M. Reporter
INVESTORS in Europe are becoming more confident about spending their cash piles, according to data out yesterday.

German analyst and investor morale hit its highest level in more than two and a half years in January, think tank Zew said.

The monthly poll of economic sentiment climbed for a second month to reach its highest level since May 2010, rising to 31.5 points from 6.9 in December.

“This is a huge upwards jump and a positive surprise. It reflects the improvement in the global economy, from better growth chances in China to orders in Germany’s industrial sector," said Postbank chief economist Marco Bargel.

Meanwhile, historical figures from Eurostat revealed that investors in the European Union held almost €5bn of stocks in the rest of the world at the end of 2011.

The rise from €3.8bn in 2008 means the 27 EU countries are net investors in the global equities market. EU stocks held in another member state also rose by 20 per cent in the same period.