An unexpected rise of German Business Sentiment in February (Bloomberg)  (26-02-2008)

Feb. 26 (Bloomberg) -- The German business confidence reading shows an unexpected rise in February on top of January’s advance; this may be an indication that Europe's largest economy is showing resilience versus the U.S. slowdown and higher oil prices.

The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 104.1 from 103.4 in January. Economists forecast a drop to 102.9, according to the median of 45 estimates in a Bloomberg News survey.

Evidence that growth in Germany, Europe's largest economy, is holding up reduces the need for the European Central Bank to lower interest rates. The ECB has shown little willingness to follow its U.S. and U.K. counterparts in cutting borrowing costs, saying Europe's economy is sound and inflation remains a bigger concern.

The euro rose almost half a cent after the Ifo report, to $1.4841, and Germany's DAX share index extended gains.

 Source Bloomberg