German investor confidence highest since March 2006

Confidence among investors in Germany surged in June to its highest level since before the financial crisis, a closely-watched survey showed Tuesday, as Europe's top economy emerges from a virus lockdown.

The ZEW institute's monthly barometer added 12.4 points to 63.4 in June, the same level as in March 2006, as "confidence grows that the growth trough will pass in summer," ZEW chief Achim Wambach said.

But Wambach noted that "revenue expectations remain very different for different sectors," with pessimism for export-oriented car and machine-tool makers and financial firms while IT, telecoms and services enjoy a more positive outlook.

The arrival of the coronavirus in Europe and government-imposed lockdowns to control its spread sent the ZEW's index of investors' expectations for the coming months plunging into negative territory.

A rebound was already visible in April as Germany appeared to weather the storm more ably than EU neighbours like France and Italy.

Financial players' assessment of the present situation in Germany remained deep in negative territory at -83.1 points in June, an improvement of 10.4 over the reading for May.