Investors' fears of euro zone breakup ease in September: survey
BERLIN (Reuters) - Investors' concerns about a possible disintegration of the euro zone in the next year eased in September, helped by the European Central Bank's pledge to buy ailing states' bonds, a survey showed on Monday.
Sentix research group's Euro-Break-up Index fell for a second straight month to show 51.9 percent of investors expected at least one country to quit the single currency bloc within the next 12 months, down from 61.9 percent in August.
The ECB's commitment last month to try to reduce struggling countries' borrowing costs by buying their bonds and the German Constitutional Court's rejection of legal complaints against the euro zone's permanent bailout fund were probably behind the improvement in sentiment, Sentix said.
Other positive news included the U.S. Federal Reserve's launch of another round of monetary stimulus, the Bank of Japan's decision to ease monetary policy by boosting asset purchases and China's green light for 60 infrastructure projects worth more than $150 billion.
"This gives the impression that, once again, the international community is jointly trying to fight economic sluggishness, if not the euro crisis itself. And obviously they have managed to calm down investors," Sentix said.
Investors also became less worried about the possibility of a so-called "Grexit" in September, with 48.8 percent expecting recession-hit Greece to quit the euro zone within the next 12 months, compared to 59.6 percent in August.
The survey of 897 investors was conducted between 27 and 29 September.
Sentix has been surveying more than 3,500 investors from more than 20 countries every week for over 10 years.
(Reporting by Michelle Martin, editing by Gareth Jones)
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'
- Four dead in apparent Connecticut murder-suicide
- South Korea expands air defense zone to partially overlap China's |
- Singer Susan Boyle reveals she has Asperger's syndrome: paper
- Winter storm pushes up U.S. East Coast after deep-freeze in the South