Eurozone investor confidence booms in November, Sentix says

One of the most widely-followed barometres of investor sentiment in the euro area recorded its best reading year-to-date in November, with a measure of investors' expectations at its highest since the end of 2015.

The Sentix Institute's index of euro area investment sentiment rose from 8.5 in October to 13.1 in November, while the expectations sub-index gained six points to 12.3.

"The overall index for Euroland is even rising to a new year's high, driven by further rising expectations. But also, the plus of six points in the position assessment sets an exclamation mark. Important is the fact that the economic assessment for the US does not indicate any weakness for the time after the handover. Together with Japan and the emerging markets, the sentix Global Aggregate continues to grow, which points to a solid global economic upturn," Sentix said in a statement.

Sentix said the readings on its indices for the Eurozone pointed to a positive economic surprise in the fourth quarter of 2016 and to no "further acute need" for additional measures by the European Central Bank.

In parallel, a similar gauge tracking sentiment worldwide increased from 11.6 to 14.8 - its highest mark since May 2015 - thanks in particular to the contribution made by emerging markets.

Regarding investors' expectations for the impact of the US election on the economy, Sentix said that for now they "do not see any confusion for the economy because of the event. [...] Certainly, the choice of the outcome will have consequences on the extent of the expectations. A few days before the decision, there is no abrupt shock for the time after this on the agenda."

Headline sentiment indices rose for all geographical regions, save for Switzerland and Austria, with the indicators for the Eurozone and Germany pointing to 'boom' conditions, ZEW said.

Commenting on the survey figures, Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, said:"Investor sentiment do not always correlate with economic survey data, but the rise in the Sentix also increases the chance that the strong start to Q4 for the PMIs and IFO will be sustained this month."