Post-referendum calm continues to drive sentiment higher in Europecom

By many measures, sentiment across the European continent has jumped to their highest level for the year. While the improvement in the economy and the increase in employment exerted impact, it was actually the post-Brexit referendum calm that has stolen the show.

Sentiment across Europe declined sharply in August, in the wake of the referendum outcome but as the UK and the European economy performed much better than all the doom and gloom predictions, sentiment has soared.

• Euro zone business climate rose to 0.55, the highest level in years.

• Industrial confidence surprisingly improved to -0.6, again best level in years. Services confidence improved to 12, the best reading since September 2014.

• The economic sentiment improved to 106.3, the best reading since December 2015.

• The only and major drag is the consumer confidence, which continues to hover at -8.

The euro is currently hovering at 1.09. It remains unmoved by the data as the focus has turned to FOMC next week.