The euro zone sentiment recovered in November, albeit slightly, after dropping for the past three months on speculation that a robust global economy supported by Japan and the United States could spell good tidings for the currency bloc, according to a poll released on Monday.
The Sentix research group’s gauge that tracks investor morale in the euro zone increased to -11.9 this month, compared with -13.7 in October. This exceeded the median analysts’ estimate of -13.5 in a Reuters’ poll.
“The decline in growth expectations since August came to a halt in November. Statements by the Bank of Japan and the European Central Bank helped boost investors’ outlook for the next six months,” said Sentix in reference to proposed stimulus incentives by the two institutions.
ECB President Mario Draghi told reporters last week that the central bank was ready to roll out further stimulus measures. The Bank of Japan revealed at the end of last month that it will widen its qualitative and quantitative easing program.
The gauge monitoring Germany increased from 5.4 last month to 9.8, propelled by accelerating global economic growth, though tensions in Ukraine were reportedly affecting German businesses. A sub-index of sentiment for euro-area economy rose to -2.0 in November, after touching a two-year low in October.
Meanwhile, Brazilian economists have trimmed down their forecasts for the nation’s economic growth pace for 2014 and 2015, a weekly central bank survey published Monday showed.
Brazil’s economy is expected to grow 0.2 percent this year and 0.80 percent next year, a survey involving around 100 financial institutions showed. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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