The confidence in the euro zone improved in January for the third consecutive month, the long-term prospects for economic development of the block reached its most optimistic level in six months.
The confidence in the euro zone improved in January for the third consecutive month as investors and analysts put aside uncertainty about the elections in Greece and long-term prospects for economic development of the block reached their most optimistic level in six months.
The index Sentix research firm, which measures confidence among investors and analysts in the euro zone, rose to +0.9 -2.5 in January from the previous month, above the consensus forecast in a Reuters poll had expected a reading of -1.0. The index back into positive territory for the first time since August 2014.
“This development is surprising because since last face new elections in Greece as another factor of stress in the euro zone. However, investors clearly believe that Greece is an isolated problem that just will effect the rest of the euro zone, “Sentix said in a statement.
The three-month improvement in the index indicate a positive turnaround in the euro zone Sentix said.
“This signal recovery is interesting, because the ECB is about to start an extensive program of bond purchases to fight deflation. In a period of Recovery, however, a measure of this type is hardly necessary, “he said.
Greece will hold parliamentary elections on January 25 and opinion polls suggest that the leftist Syriza will be the most voted. Syriza wants to suspend the austerity measures and a large portion of the national debt, but partners like Germany have warned that Athens could lose the support of the eurozone if you change the terms of its bailout.
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