Euro zone investor morale rises in May as recession fears fade
Indicator at highest level since November as concern over disorderly Brexit lessens
Investor morale also improved in Germany, rising to 7.9 - its highest since November 2018 - from 2.1 in April.
Investor morale in the euro zone improved in May for the third month in a row to hit its highest level since November 2018, helped by a buoyant global environment and the danger of a disorderly Brexit being averted until October.
The Sentix research group said on Monday its investor sentiment index for the euro zone rose to 5.3 in May from -0.3 in April. Analysts had expected a reading of 1.4.
“In May, the economic situation continued to improve globally, but also in Europe. Fears of a recession are thus receding into the background,” Sentix managing director Manfred Huebner said in a statement.
A sub-index on euro zone expectations improved for the fourth month in a row, reaching -0.3, its highest level since March last year. A current situation index rose to 11.0 from 3.8.
Investor morale also improved in Germany, with an investor sentiment index for Europe’s largest economy rising to 7.9 - its highest since November 2018 - from 2.1 in April.
“Apparently, the spark from the Chinese economy, which has recovered significantly since the start of the year, is increasingly jumping over to the export-dependent German economy,” Mr Huebner said.