Euro zone business morale strong, while consumers remain skeptics

Business sentiment pan Europe soared, while consumer sentiment remained stagnant. Economic sentiment has reached highest level since 2011.

• European Central Bank (ECB) assurance to keep policy very accommodative for very long along with readiness to act further if required has overall boosted sentiments.
   
• Concern over immediate hard landing in China and weakness in emerging markets seem to be soothing.
   
• Business prospect is great with weaker Euro improving competitiveness of Euro area exports as well as turnaround in domestic economy.

Today's economic survey showed that sentiment across Euro zone rose but consumer confidence lagging.

• Euro zone business climate rose to 0.44 in October much higher from 0.36 prior and 0.32 expected.

• Industrial confidence rose to -2 from -2.3 prior. Economic sentiment improved to 105.9 from 105.6 prior.

• Services sentiment dropped marginally to 11.9 from 12.4. Sentiment dropped in services sector for first time since December.

• Consumer confidence remained same at -7.7.

Euro is currently trading at 1.095 against Dollar.