This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

German Business Confidence Rises

By DAVID McHUGH

FRANKFURT, Germany (AP) â¿¿ A closely watched index of German business confidence rose for the fifth month in a row in September, reflecting the improved prospects for Europe's largest economy and the 17-country euro currency union.

The Ifo institute's index, released Tuesday, edged up to 107.7 points from 107.6 in August. Market analysts had expected it to rise slightly more, to 108.0.

The index is based on a survey of 7,000 companies about how they think the situation is now, and how they see things going in the coming months. Economist Carsten Brzeski at ING said the results showed the economy was "stabilizing at a high level."

Germany's economy expanded 0.7 percent in the second quarter, helping the eurozone return to growth after six quarters of shrinking output. But recent figures for German industrial production and retail sales have been disappointing, raising concerns that the third quarter may not be as strong.

Brzeski said the Ifo figures should dispel those doubts.

"Today's Ifo provides further evidence that fears about a sharp slowdown of the German economy in the second half of the year were overdone," he wrote in a note to investors.

Holger Schmieding at Berenberg Bank said that while it was "slightly disappointing" the index fell short of market expectations, it was reassuring that domestic retail demand, along with exports, was supporting growth. He predicted the economy would expand 0.5 percent in both the third and fourth quarters, with some risk that the third quarter could be slightly less and the fourth quarter slightly more.

The eurozone is still struggling with excessive levels of debt in several of its member countries, including Greece, Ireland, Portugal, Spain and Italy. A promise by the European Central Bank to buy the bonds of indebted countries if they promise to fix their finances has calmed bond markets over the past year, removing fears that a government might be unable to pay its debts.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs