Sentiment in Spain and Italy Bounces Back on Bank Bailout

Sentiment in Spain and Italy Bounces Back on Bank Bailout


Quotes from Societe Generale Cross Asset Research:
-The latest European Commission survey appears to be a classic example of the triumph of hope over expectations. Overall, the headline economic sentiment index fell by 0.6 points to 89.9, its lowest level since October 2009. In contrast to last month, sentiment actually recovered in Spain and Italy which helped offset sustained falls of 1.4 points in France and Germany.
-Probably the best way of interpreting these figures is as a wave of relief following the announcement of a planned bailout for the Spanish banks. Certainly it is noticeable that the sharpest improvements were actually recorded in the Spanish retail and consumer indices at a time when the economic fundamentals continue to deteriorate.



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