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Sentix index rises in November as euro zone recovery accelerates

Published 07/11/2016, 09:39
Updated 07/11/2016, 09:50
© Reuters.  Sentix index rises in November as euro zone recovery accelerates

BERLIN (Reuters) - Investor sentiment in the euro zone improved further in November, reaching its highest level for the year and easing pressure for further stimulus measures by the European Central Bank, a survey showed on Monday.

The euro zone index produced by the Frankfurt-based Sentix group rose to 13.1 from 8.5 in October, far exceeding the 9.1 consensus in a Reuters poll of analysts.

"The recovery in the euro zone accelerated in November," Sentix said in a statement. "The overall index for the euro zone rose to a new high for the year, driven by revenue expectations that are continuing to increase."

Sentix said the pace of the increase was particularly notable, which could lead to a positive surprise in fourth quarter economic data.

It said the developments should please the European Central Bank, which has held off on further stimulus measures to let those steps already implemented take effect.

"As a result there should be no further acute need for action by the central bankers," it said.

Sentix said the survey showed sentiment in the eurozone,

Germany, Switzerland and Asia, excluding Japan, were all in the "boom" zone.

Sub-indices on investors' assessment of the current situation in the eurozone and their expectations for the future

both rose.

Sentix said its index tracking Germany rose to 29.2 from 27.7 in October, its highest level since May 2015. Sentix polled 1,024 investors between Nov. 3 and Nov. 5.

The group said investors did not expect the Nov. 8 U.S. presidential election to have a major effect on the economy, and said "no abrupt shock" appeared to be on the horizon.

The group's U.S. index rose to 19.6 in November from 17.8 in October, reaching its highest level since December 2015.

However concerns about lack of budgetary discipline and protectionism could increase in coming months, largely reflecting fears linked to a possible victory by Republican candidate Donald Trump, the group said.

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