Euro-Area Confidence Makes Surprise Leap to Four-Year High

Confidence in the euro-area economy unexpectedly improved in October for a fourth consecutive month as the European Central Bank debates further stimulus.

An index of executive and consumer confidence climbed to 105.9 from 105.6 the previous month, the European Commission in Brussels said on Thursday. That’s the highest level since June 2011. Economists forecast a decline to 105.1, according to the median of 27 estimates in a Bloomberg survey.

ECB president Mario Draghi hinted last week that he may add on to a 1.1 trillion-euro ($1.2 trillion) asset-purchase plan to push up inflation in the 19-nation region. While acknowledging that the domestic economy remains resilient, he pointed to a slowdown in emerging markets and risks from lower energy costs and a stronger euro. The inflation rate probably stood at zero in October, economists said before a report on Friday.

Bloomberg

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.