MANNHEIM, Germany (Reuters) - The euro zone crisis has come to an end for now and positive leading indicators in the single currency bloc and Germany drove investor sentiment in Europe's largest economy to its highest level in 3-1/2 years, an economist at the ZEW institute said.
"For Germany, it's relatively good news regarding the business cycle. Early indicators at the moment are positive especially for the euro zone," said ZEW economist Marcus Kappler.
Earlier, the institute's survey showed investor and analyst sentiment for Germany rising in October to its highest level since April 2010.
Fellow ZEW economist Michael Schroeder said the index would have risen higher had it not been for problems in the United States, where there has been a partial government shutdown due to a budget dispute.
"People expect long-term interest rates in the United States will rise due to a higher risk premium as a result of this household debate in the United States," said Schroeder.
(Reporting by Sakari Suoninen and Andreas Framke, writing by Michelle Martin; Editing by Madeline Chambers)