Monday’s series of economic indicators showed investors are becoming more confident about the continued economic recovery, ignoring concerns that new outbreaks of coronavirus across the continent have may cause partial or full closure to come back.
Investor sentiment, according to Sentix’s calculations, has risen for the fourth consecutive month and outstripped expectations, with sentiment on Germany recovering faster than other European Union countries.
The French central bank said on Monday economic activity in July was 7% lower than what it would have been in the absence of a pandemic, but added that the recovery is on track. and “in line with the trajectory predicted last month.”; It confirmed that France’s gross domestic product was down 14% in the second quarter of the year.
The UK, which has imposed a 14-day quarantine measure on visitors from Spain, said it is monitoring the situation elsewhere in Europe. The government will “not hesitate” to adopt a similar measure against other countries like France if the situation requires it, Exchequer Prime Minister Rishi Sunak said over the weekend.
Prospects: Investor and corporate sentiment is likely to remain volatile in the coming months as concerns increase, then subside, on the prospects of new locking measures. When uncertainty occurs, all such surveys, often based on the mood of the moment, should be done with a large bit of salt. On the other hand, actual hard data – such as Q3 GDP which will be available later this week – should be taken more seriously, with the warning that they say little about how the recovery will unfold: Both investors and consumers are still too unpredictable.