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Euro area economic confidence unexpectedly jumps

Euro area economic confidence unexpectedly jumps

Economic confidence in the euro area saw an unexpected jump in December, as the investor morale measure rose to +0.7 after recording -4.5 in November, the Sentix data released on Monday showed.  

Analysts had predicted a reading of -5.4, but the reading climbed to the highest level since May this year.

The Current Situation gauge rose from -5.5 to -5.0, the highest since July, while the Expectations Index soared from -3.5 to 2.5, marking the highest reading since March 2018.

“The second improvement in a row may be taken as an indication that the spectre of recession has been dispelled in the Euro zone,” Sentix said.

With the ease of euro area recession fears, U.S.-China trade war and disordered Brexit, it seems that the confidence would continue to rise in the coming period.

As of 11:26 GMT, the euro traded higher at 1.1073 versus the U.S. dollar, noting that hit a top of 1.1115 last week, the highest since November 5.

Later in the week, eyes will focus on ECB President Christine Lagarde as she takes on her first monetary first policy speech.

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