FRANKFURT AM MAIN: Investor confidence in Germany held steady in December despite uncertainty over Italy's troubled banks and upcoming elections in Europe, a leading survey said Tuesday.
The headline index calculated by the ZEW economic institute stood at 13.8 points, the same value it reached after a sharp jump in November.
Analysts surveyed by Factset had predicted sentiment would climb slightly higher to 14.1 points.
"The overall assessment is quite positive," ZEW president Achim Wambach said in a statement.
"The considerable economic risks arising from the tense situation in the Italian banking sector, as well as the political risks surrounding upcoming elections in Europe, seem to have faded into the background at the moment," he said.
Markets are nervously watching the developments in Italy, where political upheaval has added to concerns about the country's ailing banks, which are saddled with bad loans.
The Monte dei Paschi di Siena bank (BMPS) in particular urgently needs to raise cash to avoid being wound down, and there are fears that any shocks to the Italian banking sector could spread to the wider eurozone.
Following the voter upsets caused by Brexit and the surprise victory of Donald Trump in the United States, investors are also bracing for elections next year in key eurozone economies France, Germany, the Netherlands and possibly Italy.
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