Further improvement in EC economic indicators expected for February: Societe Generale

Quotes from Societe Generale Cross Asset Research:

-We expect the EC's economic confidence index to rise further, from 101.2 to 102.5, in February, stemming from improvements across all economic sectors. Lower oil prices, a more neutral fiscal policy with tax cuts in some countries, combined with a weaker euro, are boosting consumer and business confidence.

-However, improvements in economic sentiment should be capped by remaining headwinds. In particular, the Greek issue, among other sources of policy uncertainty, high debt burdens, fear of deflation, geopolitical tensions including Ukraine, and the fear of terrorism are all putting a strain on consumer and business confidence.