German Ifo business climate rises to 2-month high of 111.2 in April

German business confidence improved in April, underlining optimism over the health of the euro zone’s largest economy, industry data showed on Thursday.

In a report, the German research institute, Ifo said its Business Climate Index rose to a seasonally adjusted 111.2 this month, above forecasts for 110.5 and up from a reading of 110.7 in March.

The Current Assessment Index rose to 115.3 in April from 115.2 in March, but below expectations for a reading of 115.7.

The Business Expectations Index, which measures attitudes toward business prospects over the next six months, improved to 107.3 this month from 106.4 in March, beating forecasts for 105.8.

The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.

Following the release of the data, the euro added to gains against the U.S. dollar, with EUR/USD rising 0.15% to trade at 1.3839, compared to 1.3832 ahead of the data.

Meanwhile, European stock markets remained higher. The DJ Euro Stoxx 50 rose 0.65%, France’s CAC 40 picked up 0.75%, London’s FTSE 100 increased 0.5%, while Germany's DAX tacked on 0.85%.