The Sentix research group's index tracking
morale among investors in the euro zone hit 10.1 in July versus
8.5 the previous month, rising after two consecutive monthly
The consensus forecast in a Reuters poll had been for the
sentiment index to fall again in July to 8.0 but the increase
came in above even the highest forecasts.
A sub-index of expectations for the currency zone's economy in
the next half-year picked up for the first time in four months
though it was still relatively weak. It rose to 18.3 from 17.0
in June, which was the weakest reading since August 2013.
The sub-index on the current economic situation in the euro zone
rose to 2.3 from 0.3 last month.
"After a four-month weakening phase, growth expectations for the
euro zone are now stabilizing," Sentix said.
The index was based on a survey of investors conducted between
July 3 and July 5, which Sentix said gave them a month to digest
the potential impact of the ECB's decision to cut rates to
record lows and boost bank lending.
"This stabilization coincides with the new monetary policy
measures of the European Central Bank. But the real boost for
the euro zone comes from the world economy," Sentix said,
singling out improvements in the United States and Japan.
The Sentix global index hit its highest level since January at
17.9, an index tracking Germany rose to 29.0 in July from 28.8
in June, the United States reached its highest level since
February 2004 at 29.3 and an index for Japan rose to 9.6.
(Reporting by Stephen Brown, Editing by Alexandra Hudson)
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