Positive vaccine news has made Eurozone investors vastly more cheery, with a closely watched sentiment index hitting its highest level since February.
The Sentix Eurozone investor sentiment index jumped to minus 2.7 in December from minus 10 in November, the data company said today.
Driving the surge was a sharp recovery in investors’ views of the likely direction of the economy. The Sentix expectations gauge rose from 15.3 in November to 29.3 in December, its highest level since 2015.
Markets have recovered sharply since Moderna, Pfizer/Biontech, and Astrazeneca/Oxford University all posted positive vaccine trial results.
Pfizer’s vaccine has now been approved for use in the UK. EU and US regulators are yet to decide, but experts say widespread vaccinations could be taking place by the spring.
The news of an effective preventative treatment for coronavirus has cheered investors. It means economies could begin to heal rapidly next year as normal life resumes.
“Investors are reflecting the improved future prospects for the global economy, which will result from the soon availability of at least three vaccines to fight the corona pandemic,” said Patrick Hussy, Senitx managing director.
“The outcome of the US election is also likely to have had a positive effect on the latest survey results.”
Democrat challenger Joe Biden beat incumbent Donald Trump in November’s election. Biden’s appointment of former Federal Reserve chair Janet Yellen also boosted investor sentiment, who saw it as laying the groundwork for strong fiscal stimulus.