European Market Confidence Data Mixed as Players Await EU Summit Results
THE TAKEAWAY: Economic confidence in Europe rises less than predicted -> markets await EU leaders’ attempts to stimulate growth -> Euro bearish on the day after recent strength
An index of executive and consumer sentiment in the 17-member Euro bloc showed confidence rising less than had been expected. The index rose to 93.4 in January from a revised 92.8 in December, less of a jump than the 93.8 predicted by economists. A breakdown of the data showed Germany as by far the region’s most confident economy, while Italy and Spain were weak.
The data comes as markets await the results of today’s EU leaders’ summit. It is widely hoped that the meeting will produce comprehensive solutions to stimulate growth in the ailing Eurozone. Markets are expected to appreciate positive developments to the tune of a new EU fiscal treaty to help alleviate the far-reaching credit crisis.
The Euro remained basically unaffected by the latest data, with markets more focused on fundamental developments out of Brussels. As of this report, the Euro was in the midst of consolidating recent gains made against the Dollar, and was seen as having the potential for further upside correction before resuming its downward trend.
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