German investor confidence jumped in December, buoyed by hopes that vaccines – which are expected to win approval for general use in the EU imminently – could help end the coronavirus pandemic.

The ZEW institute’s monthly barometer measuring economic expectations rose to 55.0 points from 39.0 points in November, after falling for two straight months.

“The announcement of imminent vaccine approvals makes financial market experts more confident about the future,” said ZEW president Achim Wambach.

The announcement of imminent vaccine approvals makes financial market experts more confident about the future- ZEW institute president Achim Wambach

Britain on Tuesday became the first country to administer the Pfizer/BioNTech coronavirus vaccine outside a clinical trial, and potential approvals of a swathe of vaccines have galvanised optimism of a route out of the pandemic. 

ZEW’s figure, based on a survey of 174 financial market experts, came in well above analyst expectations.

However, it did not reach the high of 77.4 points logged in September, ahead of the second wave of the pandemic. 

Germany reintroduced restrictions in November to curb infections, including shutting food-and-drink outlets and leisure and cultural sites, but kept shops and factories open.

German data for October showed industrial production and orders rose, with Germany’s car industry showing promising resilience.

Despite the growing investor optimism, ZEW’s assessment of the current economic situation in Germany worsened again, dropping 2.2 points to minus 66.5 points. 

“The immediate outlook remains challenging, with elevated infection rates across the eurozone,” said Katharina Koenz from Oxford Economics.