European investor hopes rest again on developed economies

Unrest in the Middle East has led to a marked improvement in the current views Europeans have to economies in the US and Europe, according to a survey by German pollsters Sentix.

The data providers last week recorded a 0.4 point improvement in investor sentiment towards the Eurozone’s position.

The reading of 17.1 was the highest since September 2007.

Favour towards the eurozone is held roughly equally by private and institutional investors. In total, 3,200 were questioned last week for the survey.

They seem to feel more optimistic about equities than fixed income, as Sentix’s monthly survey also registered a growing bearishness towards bonds generally since the second quarter of 2010.

Among the regions, positive feelings towards the US grew most starkly in Sentix’s March poll.

The pollsters said this was driven by signs of recovery in the US job market, and the leading indicators of purchasing managers’ intentions.

Meanwhile, Europeans’ attitudes towards emerging markets cooled in what Sentix called “an inverse image of last year”.

Both sentiment towards EMs’ present situation and outlook fell, continuing downwards trends that began in December.

“The reason for this are the lifting of base rates by governments and central banks in China and other emerging markets, and increased sensitivity of these economies to rising oil prices,” Sentix said.

“The hopers of investors this year rest more and more once again on the established pillars of the global economy, first and foremost the eurozone, US and Japan.”

 

 

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David Walker

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