Experts Expect Strong German Stock Market Performance in 2011

Compared internationally, the German stock market is expected to show above-average growth in 2011. Stocks in the engineering as well as chemical and pharmaceutical industries are expected to perform particularly well. These are the findings of a survey of 231 financial market experts conducted by ZEW in December 2010.

According to over 75 percent of the financial market experts surveyed by ZEW, in 2011 the DAX will perform better than the MSCI World Index (a portfolio of standard stocks from around the globe). Furthermore, over 75 percent of those surveyed are of the opinion that Asian stock markets, with the exception of Japan, will experience above-average growth as well. About 40 percent of the polled experts assume that the stock markets of Japan, the United Kingdom, and the eurozone (with the exception of Germany) will perform below average. Almost 56 percent of the questioned financial market experts expect the US American stock market to develop comparably to the MSCI World Index.

With regard to the performance of stock prices in individual sectors, the experts favour certain sectors in the German market. In particular, the stocks of engineering, chemical, and pharmaceutical companies are expected to perform better than the DAX average.

The financial market experts questioned by ZEW are further optimistic about stocks in the automobile and consumer goods sectors. By contrast, stocks in the banking and insurance sector are still viewed with considerable skepticism. About 47 percent of the surveyed financial market experts expect this sector to perform below average over the next twelve months.

For further information please contact

Zwetelina Iliewa, Phone: +49 (0)621/1235-346, E-mail: iliewa@zew.de

Prof. Dr. Felix Schindler, Phone: +49 (0)621/1235-378, E-mail: schindler@zew.de