Euro zone sentiment improves over ECB’s stimulus

European Central Bank has succeeded once more this year in pushing ailing sentiment on the brighter side as it has opened its stimulus tap by increasing asset purchase pace to €80 billion per month, included corporate securities and introduced four new TLTROs, which will enable banks to borrow at as low as deposit rates, which is at -0.3%.

However, tension surrounding Brexit seems to be taking toll on 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 below of 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 gain back last year’s pace.

Euro is currently trading at 1.114 against Dollar.