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Euro zone investor morale rebounds in November

Morale among investors in the euro zone jumped in November to its highest level since June on signs of an economic upswing in Asia and resilience in the US economy, a new survey showed today. 

The Sentix research group said its investor sentiment index for the euro zone rose to -4.5 from -16.8 in October, when it hit its lowest level in six and a half years. 

The November reading compared to the Reuters consensus forecast for -13.8. 

Sentix Managing Director Manfred Huebner said the cause of this improvement in sentiment seems to lie on the one hand in Asia ex Japan, where the data point to a beginning upswing. 

“Investors also appreciate the resilience of the US economy,” he added.

“The latest data from the Sentix economic indices give hope that a deeper recession can be averted in the euro zone,” Huebner added, noting that the European Central Bank’s monetary policy was supporting morale.

In September, the ECB cut rates deeper into negative territory and promised bond purchases with no end date to push borrowing costs even lower, hoping to kick-start activity nearly a decade after the bloc’s debt crisis. 

Investors’ assessment of the current situation in the euro zone rose to -5.5 from -15.5 in October. A sub-index on expectations surged to -3.5 from -18 in October, hitting its highest level since May.

An expectations index for Germany, the euro zone’s largest economy, also surged to its highest since May.

The survey tracking 1,082 investors was conducted from October 31 to November 2.

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