Eurozone sentix index improves further in Nov, eases pressure on ECB for further stimulus

Sentix Euro Zone Investor Confidence index improved further in November to hit the highest level for the year. Data released by Sentix GmbH, the Frankfurt-based Sentix group on Monday showed euro zone investor sentiment rose to 13.1 in November from 8.5 in October, far exceeding the 9.1 consensus in a Reuters poll.

Detalis of the survey showed sentiment in the eurozone, Germany, Switzerland and Asia, excluding Japan, were all in the “boom” zone. Sub-indices on investors’ assessment of the current situation in the eurozone and their expectations for the future both rose.

Sentix Germany index rose to 29.2 from 27.7 in October, to its highest level since May 2015. The group’s U.S. index rose to 19.6 in November from 17.8 in the previous month, reaching its highest level since December 2015.

Sentix said the pace of the increase was particularly notable and could lead to a positive surprise in fourth quarter economic data. It said the developments could ease pressure for further stimulus measures by the European Central Bank which has held off on further stimulus measures to let those steps already implemented take effect.

“As a result there should be no further acute need for action by the central bankers,” Sentix said in a statement.