German ZEW economic sentiment improves to 38.5 in June

German economic sentiment improved more-than-expected in June, easing concerns over the impact of the euro zone’s debt crisis on the region’s largest economy, industry data showed on Tuesday.

In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment rose by 2.1 points to 38.5 in June from May’s reading of 36.4. 

Analysts had expected the index to rise by 1.7 points to 38.1 in June.

The Current Situation index declined unexpectedly to 8.6 in June from 8.9 in May, compared to expectations for an increase to 9.5.

On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism. 

Meanwhile, the index of euro zone economic sentiment improved to 30.6 in June from a reading of 27.6 in May. Economists had expected euro zone economic sentiment to rise to 29.4 this month.

Following the release of that data, the euro added to gains against the U.S. dollar, with EUR/USD rising 0.23% to trade at 1.3396.

Meanwhile, European stock markets remained mixed following the data. The EURO STOXX 50 fell 0.25%, France’s CAC 40 declined 0.35%, Germany's DAX slumped 0.35%, while London’s FTSE 100 eased up 0.3%.