Business’ mood remain sour in Euro zone

Several sentiment data were published across in Euro Zone at 10 GMT.

• Improvement was seen in Economic sentiment which rose 102.1 from previous 101.4

• Consumer confidence still negative at -6.7 but better from previous -8.4

• Business confidence deteriorated despite weak currency outlook. Business confidence fell to 0.07 compared to previous 0.12 and 0.22 expected. Services sentiment worsened to 4.5 from a prior 4.8. Industrial confidence remained negative at -4.7.

• Recent prospect of bond buying by ECB and a weaker Euro so far failed to lift the mood throughout the union.

• Improvement is expected at the later part of the year. Once the lower oil price and weak Euro starts to sip into confidence we might see improvement on the horizon.

• Notable that consumer confidence in Italy rose to 110.9 compared to previous 104.4.

On the back of the development, portfolio flow to Euro Zone may remain restricted to larger segment of the stock market, not benefiting the prices of small and medium sector.

Performances of the stocks are well for the day. Germany (+ 0.27%), EuoStxx50 (+0.45%), France (+0.32%), Italy (+1.04%), Spain (+0.58%).