- Jennifer McKeown, Capital Economic
According to the data released, the ZEW survey of economic expectations for the Eurozone advanced to 12.3 for October from 5.4 in September showing the highest reading for four months. Also, there was a small rise in the Eurozone inflation reading with a big number of economists expecting short-term interest rates to remain on hold, although the number expecting a further cut was still slightly higher than those expecting an increase. Nevertheless, the data overall continues to suggest a very slow improvement in the overall Eurozone outlook.
The German ZEW index advanced to 6.2 for October from 0.5 the previous month. Overall, the index is still far below the long-term average of 24.1 highlighting reservations surrounding the financial sector having a negative impact. The Current Conditions Index went up to 59.5 this month from 55.1 in September, above expectations for an increase to 55.5. In the meantime, European stock markets were trading mixed. The benchmark Euro Stoxx 50 dropped 0.15%, Germany's DAX gave up 0.17%, France's CAC 40 went up 0.06%, while London's FTSE 100 lowered to 0.01%
© Dukascopy Bank SA