German Market Sentiment Rises Ahead U.K. Vote

German investor confidence improved in June, following preliminary Britain’s polls showing “Remain” camp leading the referendum.

The index of investor and analyst expectations, which predict economic developments six months ahead, climbed from 6.4 to 19.2 in May, it’s highest since August 2015, the ZEW Center for European Economic Research in Mannheim said on Tuesday.

“The improvement of economic sentiment indicates that the financial-market experts have confidence in the resilience of the German economy,” ZEW President Achim Wambach said in a statement. “However, general economic conditions remain challenging. Apart from the weak global economic dynamics, it is mainly the EU referendum in Great Britain which causes uncertainty.”

The possibility of the UK leaving the European Union has dictated financial market sentiment in recent weeks, because the UK is the third-largest destination for German exports.

The survey was carried out among 202 analysts, from June 6-20. A gauge for current conditions rose from 53.1 to 54.5 in June.