07 September 2014
Posted in
sentix Weekly
ECB moves further undermine Euro sentiment
The latest Sentix survey provides a timely view of investor sentiment following last week's ECB policy moves. Initially, at least, they have been taken well by equity markets, with both near and medium-term sentiment readings for the EuroSTOXX also continuing to edge higher (see Page 3). In the case of Eurozone bonds, investors appear more equivocal on the medium-term outlook, though they view economic developments as becoming more bond-supportive (Chart 2, page 2). On the other side of the sentiment divide, however, survey participants have become even more downbeat on the outlook for the single currency. Pessimism on the nearterm prospects for Euro versus USD has returned to historic lows, while pessimism on the medium-term remains in the ascendancy (Charts 3 and 4, page 2).
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