ZEW: No Price Correction ExpectedResearch
It must be jinxed. As soon as the DAX reaches a new high, the sentiment among the 350 financial experts from banks, insurance and industrial companies surveyed monthly by the Centre for European Economic Research (ZEW) starts to cool down. However, despite this mood shift, a narrow majority of the surveyed financial experts continue to believe that a price correction is not to be expected.
However, the share of experts who expect a medium-term lateral movement of the German stock index has steadily increased throughout the last few months and now constitutes one third of all respondents. As a result of the Asian crisis, the launch of the euro and the economic requirements attached to the upcoming elections, the estimates concerning the economic situation are fraught with many uncertainties. In any case, over half of the market experts expect no improvement of the overall macroeconomic situation in the course of the next six months.
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