The better-than-expected reading, which a ZEW
economist said was also fuelled by low interest rates, boosted the euro and European shares and sent German Bund futures lower.
Investor Confidence shows expectations of economic situation during the next six months.
German government bond futures were 24 ticks lower at 138.63, after hitting a contract high of 139.06 the previous session ahead of the ZEW
President Clemens Fuest warned that global frictions,
"After three substantial increases between December 2012 and February 2013, the indicator has stabilized in March at a respectable level," said ZEW
president Clemens Fuest, in a statement.
"A clearly better-than-expected ZEW
number, showing a surge in economic optimism managed to lift Dax out of the misery it suffered this morning," added Anita Paluch at trading firm Gekko Global Markets.
Current Situation Index had declined as well: from 44.1 p.
"The renewed rise in economic expectations shows that financial market experts believe the economic outlook for Germany to have improved for the next six months," said ZEW
president Wolfgang Franz.
's economic sentiment indicator, which gauges investors' six-month outlook, surged by 24.6 points this month to 31.5.
Extra negative might come from data on GDP of EU for 1Q, ZEW
index also will unlikely be inspiring.
Also weighing on bourses was a slump in Italian production, though the German ZEW
investor expectations improved, while tje UK labor report was robust with the employment rate at a record high.