- Annika Breidthardt, European Commission spokeswoman
Sentiment in the Euro area deteriorated in August, albeit to a limited extent, indicating the currency bloc is managing to weather a weakening global economy and uncertainty about the future of Greece. Sentix's index measuring morale among investors and analysts in the Euro zone dropped to 18.4 this month, compared with 18.5 in July. Economists, however, had expected a rise to 20.0 in the reported month. Investors' assessment of current conditions ameliorated slightly to 15.3, reaching the highest level since July 2011. At the same time, the index, which tracks expectations decreased to 21.5, down from 22.3 in July, hurt by weakening global economic momentum. A gauge tracking Germany, the Euro zone's number one economy, dropped slightly, with expectations declining and the current situation component climbing.
Meanwhile, Athens is seeking to conclude talks on a rescue programme by Tuesday, leaving enough time for national parliaments to assess the deal so funds can be disbursed for an August 20 payment to the European Central Bank. An accord for up to 86 billion euros in fresh loans to the debt-stricken Greece must be in place by August 20, when the repayment to the European Central Bank is due. Officials are optimistic an agreement will be reached, allowing Greece's parliament to pass any new required reforms in the middle of the week and paving the way for a meeting of the Eurogroup at the end of the week.
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