German investors' confidence improved in October, according to figures released by the Mannheim- based Center for European Economic Research or the ZEW on Tuesday.

Standing at 39.4 points versus 38.6 points in September, the confidence indicator remains above its historical average of 34.3 points, the ZEW said.

"The stabilization of the indicator may be due to a number of contradictory factors," it said in a press release.

Somewhat lower oil prices and the world economy's sustained robust growth had a positive impact. Ongoing uncertainty about economic policy under the new government, on the other hand, has a negative impact on growth prospects.

"Experts appear to fear that the speed of political reforms will slow down and that there will be no majority for important reform programs," said the ZEW.

The Social Democratic Party (SPD) and the Christian Democratic Union/Chrsitian Social Union (CDU/CSU) agreed to form a grand coalition after no party won majority in last month's elections.

The parties were holding talks on finalizing the coalition government.

The ZEW's survey was participated by 324 analysts and institutional investors who had been asked about their medium-term expectations concerning economic activity and capital markets.

Source: Xinhua