Euro zone sentiment rises for fifth month in row in January

BERLIN Mon Jan 7, 2013 3:04pm IST

BERLIN (Reuters) - Euro zone sentiment improved for a fifth consecutive month in January, with investors' expectations rising to their highest level in almost two years after a successful Greek bond buyback and a dip in Spanish jobless figures.

Research group Sentix said its monthly index tracking investor sentiment in the 17-nation currency bloc climbed to -7.0 in January, up from -16.8 in December, coming in well above a Reuters consensus forecast for an increase to -15.0.

"The euro zone index was stronger than expected... and that was partly due to many rather minor positive reports from around the region," Sentix said in a statement on Monday.

A buyback of Greek debt hailed as a success, an upgrade of the recession-mired country by ratings agency Standard and Poor's and an unexpected dip in Spanish unemployment in December fed investor optimism, Sentix said.

A smaller-than-expected 2012 budget deficit for Ireland and Germany's robust labour market also contributed to the more positive mood, Sentix said.

A sub-index of expectations rose to 12.0 in January from -1.5 in December, its highest level since February 2011. A sub-index tracking current conditions rose to -24.3 in January from -31.0 in December.

An index for investor sentiment in the United States rose by 2.9 points to 10.0.

"Investors are relieved that the country avoided falling over the fiscal cliff but they are disappointed about how the American tax compromise came about and about the compromise itself," Sentix said.

An index tracking global investor sentiment rose by 5.6 points on the month to 14.1 in January, its highest level since August 2011.

"Happy New Year - the recovery is underway," Sentix said.

(Writing by Michelle Martin in London, editing by Gareth Jones)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage