Further improved expectations signal trend reversal
07 October 2012
Posted in
sentix Economic News
The composite index for Euroland rises in October for the second time in a row. Once again, the positive development in expectations is the supporting pillar for the improvement in the composite index. Expectations have even risen for a third time in a row, signaling a trend reversal. This pattern can also be found in the Global Index. For Germany, we find a special phenomenon: the doubters are currently the institutional investors, beforehand, they were to be found amongst private investors.
Headlines of the month
- The composite index for Euroland rises in October from -23.2 to -22.2 points. This is the second rise in a row. For the third time in a row, 6-months economic expectations improve – that usually confirms a new trend.
- The German composite index increases from 4.4 to 6.4 points. This development is driven especially by private investors whose expectations index shows a strong rise. Institutional investors, on the other hand, consolidate their optimism of the past months, their expectations have dropped slightly, for the time being.
- For the global aggregate, both the composite and the expectations index rise – the latter also for the third time in a row. There are a number of reasons for this: China is pushing its economy, the large central banks have again done their part. And investors actually think that this will help the economy – globally!
