Currencies

Asia markets tentative ahead of Opec meeting

Wednesday 2.30am GMT Overview Markets across Asia were treading cautiously on Wednesday, following mild overnight gains for Wall Street, a weakening of the US dollar and as investors turned their attention to a meeting between Opec members later today. What to watch Oil prices are in focus ahead of Wednesday’s Opec meeting in Vienna. The […]

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Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

Royal Bank of Scotland has emerged as the biggest failure in the UK’s annual stress tests, forcing the state-controlled lender to present regulators with a new plan to bolster its capital position by at least £2bn. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in the toughest stress scenario ever […]

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Banks

Barclays: life in the old dog yet

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […]

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Currencies, Equities

Scary movie sequel beckons for eurozone markets

Just as horror movies can spook fright nerds more than they expect, so political risk is sparking heightened levels of anxiety among seasoned investors. Investors caught out by Brexit and Donald Trump are making better preparations for political risk in Europe, plotting a route to the exit door if the unfolding story of French, German […]

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Currencies

Dollar rises as markets turn eyes to Opec

European bourses are mirroring a tentative Asia session as the dollar continues to be supported by better US economic data and investors turn their attention to a meeting between Opec members. Sentiment is underpinned by US index futures suggesting the S&P 500 will gain 3 points to 2,207.3 when trading gets under way later in […]

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Categorized | Economy

Eurozone business confidence slips, UK back up to pre-referendum level


Posted on November 29, 2016

Business sentiment in the eurozone fell unexpectedly in November while the UK saw its economic confidence gauge climb above its pre-Brexit vote levels.

The European Commission’s monthly business climate indicator in the single currency area fell 0.14 points to 0.42 this month – a three-month low and defying expectations of a slight climb.

A related measure of eurozone economic sentiment was broadly unchanged, inching up by 0.1 points after several months of strong gains to an 11-month high.

Outside the eurozone, a healthy bounce in the UK’s economic sentiment dragged the EU-wide indicator up by 0.4 points, with Britain registering a 1.5 point increase to push its confidence gauge back above to its pre-referendum level.

It was the best monthly rise since December 2015 and corresponds with resilient consumer spending in the UK following the June 23 vote.

In Germany, economic sentiment slipped o.7 points, while France rose 1.5 points. Italian confidence fell 0.6 points as the country prepares to go to the polls in a key referendum next week.

Overall, the eurozone figures provide a welcome boost for policymakers at the European Central Bank, who are expected to announce an extension of their landmark stimulus measures next week, said Jack Allen at Capital Economics.

“With inflation pressures still very weak, and the EC survey measure of inflation expectations still consistent with low core inflation, we still expect the Bank next week to announce an extension to its asset purchases by six months at the current pace”, said Mr Allen.

Chart courtesy of Bloomberg