Euro-Zone Investor Confidence Hits 15-Month High in October

The Sentix investor confidence survey for the Euro-Zone rose to a 15-month high of -12.6 in October from -14.6 in the previous month, and conditions are likely to improve throughout the second-half of the year as policy makers see the economy emerging from the worst recession since the post-war period. The breakdown of the report showed that overall expectations rose 0.25 points to 5.75 from 5.50 in September, while the gauge for the current situation increased to -29.25 from -32.75, with the research group stating that there is “a positive trend” in the global economy, which “underlines the fact that crisis tensions have unwound.” As economic confidence improves, the European Central Bank may turn increasingly hawkish over the coming months as the outlook for growth and inflation improves but nevertheless, the board is likely to hold the benchmark interest at the record-low over the remainder of the year as policy makers see a risk for a slower recovery.