German investor confidence jumped more than expected in July, with the ZEW economic sentiment index rising to 26.3 points from 10.5 in June, well above the 17.5 points forecast by analysts. The gauge gained 15.8 points on the month, according to data compiled by n-tv.
The upbeat reading follows Chancellor Friedrich Merz's announcement of a reform package covering pensions, taxation and labour markets earlier in July. Investors also grew slightly less pessimistic about present conditions: the current-situation sub-index improved to minus 77.6 from minus 81.0 in June.
The sentiment surge comes as Europe's largest economy seeks to sustain momentum after gross domestic product expanded 0.3 percent in the first quarter of 2026.