What is ZEW index?

What is ZEW index?

The ZEW Indicator of Economic Sentiment measures overall expert opinions on the direction of the German economy over the next six months. It is constructed based on a monthly survey of up to 350 analysts, financial professionals, and other experts.

What is Germany ZEW economic sentiment?

The ZEW Indicator of Economic Sentiment for Germany decreased by 1.7 points to -41 in April of 2022, the lowest since March 2020 but above market expectations of -48. The expectations and assessments of the economic situation are currently similar to those at the beginning of the COVID-19 pandemic in March 2020.

What is ZEW survey expectations?

Expectations Remain at a Low Level The ZEW Indicator of Economic Sentiment for Germany recorded a decline in the current April 2022 survey, falling 1.7 points to a new reading of minus 41.0 points. The assessment of the economic situation in Germany has again worsened significantly in the current survey.

What is sentiment in investing?

Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It is the feeling or tone of a market, or its crowd psychology, as revealed through the activity and price movement of the securities traded in that market.

Is market sentiment a good investment?

That is, market sentiment is about feelings and emotion, whereas fundamental value is about business performance. Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. They use various indicators to measure market sentiment that help determine the best stocks to trade.

How do you read market sentiment?

Market sentiment is demonstrated through price movements of the security in question. If prices are on the rise, then this is indicative of a bullish market. Whereas prices on the decline point toward bearish sentiment. Sentiment will differ depending on the market, and in some cases often correlate with one another.