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Euro zone sentiment recovers slightly in Nov to -11.9
[BERLIN] Sentiment in the euro zone recovered slightly in November after three months of decline as investors took heart that a more dynamic global economy propped up by the United States and Japan could lift the currency bloc, a survey showed on Monday.
Sentix research group's index tracking morale among investors in the euro zone rose to -11.9 in November from -13.7 the previous month, bettering the consensus forecast in a Reuters poll for a reading of -13.5. "The decline in growth expectations since August came to a halt in November. Statements by the Bank of Japan and the European Central Bank helped boost investors outlook for the next six months," Sentix said in a statement, referring to further stimulus measures by both institutions.
Last week ECB President Mario Draghi said the ground was being prepared for "further measures to be implemented, if needed" while the Bank of Japan announced at the end of October it would expand its quantitative and qualitative easing programme. "Cautious optimism for the euro zone appears appropriate, even if the dangers of recession are not completely overcome and it is not clear how sustainable investors' improved mood will be," Sentix added.
A sub-index of expectations for the euro zone's economy recovered to -2.0 in November, after hitting its lowest level in two years a month earlier, but investors' perception of the current economic situation deteriorated a little further.
An index tracking Germany rose to 9.8 from 5.4 in October, driven by growth momentum in the global economy, but Sentix added that developments in Ukraine remained a concern for German firms.