Investors are backing the Eurozone economy to pick up the pace over the next six months, according to new survey figures published today.
The Sentix economic index for the Eurozone, compiled from a survey of over 1,000 investors, climbed 0.6 points to a score 15.7.
The rise in sentiment on the Eurozone’s growth prospects comes despite investors being disappointed by the European Central Bank (ECB) last week after its extension of its asset purchase programme failed to meet expectations.
Amid slightly lower growth in global economic momentum, the Eurozone stands out. Explanations should be found in the latest ECB statement. The December round of ECB stimulus felt short of expectations, however, the embracement of ECB’s 'whatever it takes' message has worked yet again. Without more ECB stimulus the Eurozone would most likely be in accordance to the global outlook.
Investors also aired concern over the possibility of US interest rate rise this month. Federal Reserve chair Janet Yellen recently said the federal open market committee were on course to raise interest rates in December provided there were no surprises in economic data. The overall economic index dropped to a score of 18.8 from 20.8. However, the expectations index fell nearer to zero, implying investors are expecting slow economic growth.
Once more the economy is in retreat and expectation levels drop close to zero. But this time the Fed seems to mean business and let interest rate rise. The US dares risking its recovery!