European Central Bank’s (ECB) asset purchase program has pushed confidence across and beyond the region. Consumer, industrial, services all painted bullish mood across the zone.
- Consumer confidence rose to -3.7 from previous -6.7. In December 2014, it was close to 12.
- Business climate indicator rose to 0.23 from previous 0.07. It has been falling since November 2014 until latest release today.
- Economic sentiment across EMU rose to 103.9. This is a consecutive rise of four months.
- Industrial confidence rose to -2.9 from prior -4.7. This is a second consecutive rise.
- Services confidence rose to 6 from prior 5.3. The index posted fourth consecutive rise.
Impact –
Indicators across EMU suggests that ECB’s monetary policy easing through asset purchase is sipping in through real economy and boosting confidence pan industry.
However Euro’s reaction is somewhat mute over the release, currently trading at 1.086. Most of the benefits of improved condition and weaker Euro will be enjoyed by the stock market. European stocks remain relatively cheaper and has a lot of scope to move up.
The material has been provided by InstaForex Company – www.instaforex.com