- Morgan Stanley
Economic recovery in the Euro zone seems to be gaining more growth momentum. This is clearly proved by improving indicators, such as yesterday's PMI and today's Ifo Business Climate Index for Germany. Taking into account data for the latter one, which was released on Wednesday, it showed a significant climb in sentiment of businesses in the Euro area's largest economy. The Ifo Index jumped to 107.9 points this month, up from 106.8 points in February. Analysts have forecasted the indicator to add slightly less value to reach 107.3 points. Alongside, economists are underlying positive impetus from the European Central Bank's one trillion euros expanded asset purchases programme and weaker exchange rate of the euro, which helps to underpin investors' sentiment. Some of them are also saying that Germany is recovering back as the regional powerhouse for the whole Europe.
In addition to that, French business climate advanced to its highest level since April 2012, raising hopes that the second-biggest economy of the monetary union is finally emerging from long-lasting stagnation. The benchmark business morale index increased two percentage points to 96 last month. Moreover, sentiment in industrial sector remained at even higher level of 99 points.
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