Investor sentiment in the euro zone improved for the first time in seven months in January, a survey by the Sentix research group showed today in a sign of optimism that the worst of the financial crisis has passed.
Sentix's monthly index of investor morale in the 16-nation euro zone came in significantly higher than economists had expected, recording -34.4, compared to -42.3 in December. A Reuters poll had forecast a decline to -44.0.
"(This points to) a possible turnaround for the second half of 2009," Sentix managing director Patrick Hussy told Reuters.
A Sentix gauge of current conditions came in at -37.25 versus -42.5 in the prior month, while a measure of expectations rose to -31.5 from to -42.0 in December. That was the strongest rise since August 2005, Sentix said.
The Sentix finding fits well with other indicators suggesting investors may be feeling that the worst of financial market mayhem is behind them. Reuters monthly investment polls, for example, have also showed some return to risk appetite.
On markets themselves, meanwhile, there has been something of an unheralded turnaround.
The pan-European FTEurofirst 300 share index fell nearly 45 per cent in 2008, but it has recently been doing far better. Since hitting a year-low on November 21st, the index has gained around 16 per cent.
Perhaps reflecting expectations that the full impact of the global economic downturn is yet to hit the euro zone economy, however, other markets have done even better.
The S&P 500 index, a broad index of US stocks, has gained close to 26 per cent since late November.
Reuters