Eurozone Investor Confidence Improved: Will It Help Equity Market?

Eurozone (FEZ) (VGK) investor confidence has shown strong improvement in December 2017. The Sentix Investor Confidence Index is at 32.9 so far in January 2017 as compared to 31.1 in the previous month, beating the market expectation of 31.5. The investor confidence index has been on a gradual rise since mid-2016. This index is one of the leading indicators of the Eurozone (N100-INDEX) (VGK) (IEV).

The Sentix Investor Confidence Index shows investor sentiment toward the economy’s business conditions. A strong movement in this index is a bullish sign both for the European equity market and for the economy.

We have already seen that the major economic indicators of the Eurozone (EZU) showed solid improvements and some indicators made record highs in December 2017. All these factors suggest that the Eurozone economy is healthier.

In the next part of this series, we’ll analyze the indicators that investors should watch this week.