Investor confidence in Germany unexpectedly rose in February in anticipation of a second-half pickup in Europe's largest economy.
The Zew Centre for European Economic Research said its index of investor and analyst expectations rose to -39.5 from the 15-year low of -41.6 last month.
Concern that the US may fall into a recession has sent Germany's Dax stock index down 16 per cent this year. But any slowdown in German growth may be limited as business confidence unexpectedly rose from a two-year low, and unemployment fell to the lowest level in 15 years.
The Bundesbank expects consumer spending to recover over the next two years, offsetting a slowdown in exports.