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Germany business confidence unexpectedly rises in February

Germany business confidence unexpectedly rises in February

Business confidence in Germany showed an unexpected rise in February, reflecting the lack of concerns from Europe’s biggest economy regarding the spread of the coronavirus.

The Ifo’s business climate index soared to 96.1 this month from a prior of 95.9 in January, compared to forecasts of 95.0.  

The expectations gauge also rose to 93.4 from a previous of 92.9, while the current conditions reported a decrease to 98.2 from a previous of 99.2.

“The German economy seems unaffected by developments surrounding the coronavirus,” said Ifo president Clemens Fuest.

As of 09:36 GMT, the euro traded higher at $1.10825, but the price is still close to last week’s bottom of $1.0778, which is the lowest since April 2017.

Meanwhile, there is a sharp sell-off in global equities and risky assets due to fears regarding the spread of the Coronavirus outside China, more specifically in South Korea and Italy.

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