European Central Bank has managed to turn gloomy market sentiment into upbeat one as it opens its stimulus tap by increasing asset purchase pace to €80 billion per month, included corporate securities and introduced four new TLTROs, that will enable banks to borrow at a rate that is as low as the deposit rate, which is -0.3 percent.
However, tension surrounding Brexit seems to be taking a toll on the sentiment in some cases.
- Euro zone business climate improved to 0.26. Still around levels last seen back in December last year.
- Industrial confidence remained flat at -3.6, best this year. Economic sentiment rose to 104.7, still much lower than 106.8 seen in December last year.
- Services sentiment came better than expected but declined to 11.3 in May from 11.7 in April, much below last September’s 12.4 reading.
- Consumer sentiment has improved to 7 in recent readings, still worse than January.
All in all trend suggests, that Euro Zone confidence picked up but yet to match last year’s pace.
Euro is currently trading at 1.114 against Dollar.
The material has been provided by InstaForex Company – www.instaforex.com