German optimism at 10-month high

Zurich

GERMAN business confidence jumped to a 10-month high in April in a sign that growth in Europe's largest economy is set to pick up on the back of record stimulus and a favourable exchange rate. The Ifo institutes's business climate index rose for a sixth month to 108.6 from 107.9 in March. The median estimate was for a rise to 108.4, according to a Bloomberg survey of 36 economists.

"I'm quite optimistic about the German economy - the lights are on green, the euro is low, energy prices have dropped," said Aline Schuiling, senior economist at ABN Amro Bank NV in Amsterdam. "The biggest source of uncertainty for Europe at the moment is the situation in Greece - that could create some disruption if it doesn't evolve as we all hope."