German investor confidence is finally recovering

The latest confidence index from the ZEW economic institute rose to -19 in December from -28.5 the previous month.

The figure will assuage concerns about Europe's biggest economy, which appears to be stabilising as 2007 approaches.

ZEW compiled its closely-watched index by talking to 303 analysts and institutional investors.

Any figure below zero represents negative investor sentiment, but the figure - after 10 months of consecutive declines - shows that expectations for the economy appear to be picking up.

The financial markets had expected a more modest rebound than was recorded.

"The analysts have finally gotten over their depression," said DZ BANK economist Bernd Weidensteiner.

"The first rise since January was more than overdue."