Eurozone Investor Confidence at New High: Will It Speed Up Growth?
Eurozone investor confidence
Investor confidence in the Eurozone (FEZ) (VGK) rose significantly in the first week of May 2017. The Sentix Investor Confidence Index, a leading European economic indicator, released its data on May 8, 2017, which included a figure of 27.4. It was 23.9 in April. As of that date in May, it’s beating the market expectation of 25.0.
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Investor confidence index
The Sentix Investor Confidence Index is based on the results of surveys of ~2,800 analysts and investors and reflects investor sentiment on business conditions. A strong performance by the index is a good sign for the Eurozone (EZU) (HEDJ) (IEV).
The Eurozone’s manufacturing and services PMIs (Purchasing Managers’ Index) showed improvement in April, meaning that the region’s overall business climate is positive.
Europe’s economy has been facing some challenges in recent years. Slow economic growth and deflation have been major concerns. Now, the United Kingdom’s (EWU) impending exit from the European Union and the uncertainty surrounding several elections in the Eurozone are major economic concerns.
But after France’s presidential election on May 7, 2017, major indexes in the Eurozone showed positive performances. Independent presidential candidate Emmanuel Macron’s victory strengthened market performance and seems to be increasing investor confidence in the Eurozone.
In the next part of this series, we’ll take a look at US inflation in April 2017.