Euro-zone sentiment improves; still in contraction zone

29 June 2020

 

Summary: Euro-zone composite sentiment index improves for second consecutive month; under expectations; all major economies’ indices improve; sovereign bond yields unresponsive; implies GDP smaller contraction.    The European Commission’s Economic Sentiment Indicator (ESI) is a composite index comprised of five differently-weighted sectoral confidence indicators.  It is heavily weighted towards confidence surveys from the business sector; the consumer confidence sub-index only accounts for 20% of the ESI. However, it has a...

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