German ZEW econ. sentiment gauge rises in January

LONDON (MarketWatch)
The ZEW indicator of economic sentiment for Germany rose by 32.2 points in January to stand at minus-21.6 points, marking its highest level since July 2011, the Mannheim-based Center for European Economic Research, or ZEW, reported Tuesday
The indicator was at minus-53.8 points in December
January's increase suggests that German economic activity is likely to stabilize over the next six months rather than deteriorate
 "Contrary to repeatedly expressed fears of a recession, the assessment of the financial-market experts gives reason for cautious optimism that Germany will only experience a dent in economic activity," said ZEW President Wolfgang Franz in a statement
"The generous supply of liquidity by the [European Central Bank] and the relatively affordable refinancing terms for Italy and Spain may have supported the improvement of this month's sentiment," he said
Franz added, however, that the euro-zone debt crisis remains a risk to growth