Eurozone investor confidence rises sharply in July

Investor confidence in the euro area improved sharply in July, extending its recovery for a third consecutive month, according to data released Monday by Frankfurt-based research firm Sentix.

The Sentix Overall Investor Confidence Index for the euro area rose 10.3 points to minus 3.1 in July, up from minus 13.4 in June.

The reading came in slightly above market expectations, which had forecast the index at minus 3.4.

The improvement was driven mainly by a sharp rebound in expectations. The Expectations Index, which measures investors’ outlook for the next six months, climbed to 9.3 points from minus 6.5, while the Current Situation Index improved to minus 14.8 from minus 20.

The survey was done with the participation of 974 investors.

Sentix said in an official statement that the eurozone economic outlook is “brightening noticeably,” supported by a strong rise in expectations and improving investor confidence.

Germany, the bloc’s largest economy, is also contributing to the recovery, Sentix said, noting that recent policy measures appear to be rebuilding confidence and lifting sentiment.

“A broad-based upturn is also evident globally,” Sentix said, adding that all major economic regions are growing and that the eurozone and Germany, previously seen as drags on global growth, are now contributing to the recovery.

The improvement followed earlier declines triggered by investor concerns over Iran-centered tensions in the Mideast. The July data showed a visible recovery in both assessments of current conditions and expectations for the months ahead.

In Germany, coalition parties have been preparing a broad economic reform package with more than 30 measures aimed at reviving the stagnating economy and strengthening the country’s long-term global competitiveness.