German investor confidence rose for the third month in a row in January, hitting its highest level since February 2014, a survey suggests.
The closely followed poll by German think tank ZEW rose to 48.4 points this month, up from 39.4 in December.
Falling oil prices and a weak euro boosted sentiment, ZEW said.
The better-than-expected rise comes ahead of Thursday’s European Central Bank meeting, where it is due to take action to boost the eurozone economy.
The central bank is increasingly expected to launch a new round of economic stimulus measures, or quantitative easing (QE).
The bank has so far resisted pressure to follow in the footsteps of central banks in the UK, US and Japan by stimulating the eurozone economy through the purchase of government bonds.
In part, this has been because of opposition from Germany, which has argued that asset purchases of this type are outside of the ECB’s remit.
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