These indicators show why investors ignored Corona fears to embrace economic recovery


A series of economic indicators on Monday showed investors were growing more confident in the continued economic recovery, ignoring fears that further peaks in the coronavirus pandemic across the continent could cause a return to partial or full lockdowns .
– Investor sentiment as calculated by German group Sentix rose for the fourth month in a row and exceeded expectations, with sentiment toward Germany rebounding faster than in other European Union countries.

– The French central bank said on Monday that economic activity in July was 7% below the level it would have achieved without the pandemic, but added that the recovery was on track and “in line with the expected trajectory on last month “. He confirmed that French gross domestic product was down 14% in the second quarter of the year.
– The UK, where a 14-day quarantine has been reintroduced for travelers from Spain, said it was monitoring the situation elsewhere in Europe. The government “would not hesitate” to impose a similar measure on other countries such as France if the situation demands it, Chancellor of the Exchequer Rishi Sunak said this weekend.

Perspectives: Investor and business sentiment is likely to remain volatile in the months ahead, with fears rising and then diminishing over the prospect of further foreclosure measures. With uncertainty prevailing, all of these surveys, often based on the mood of the moment, should be taken with a pinch of salt. By contrast, real hard data – like Q3 GDP coming later this week – should be taken more seriously, with the caveat that it says little about the results of the recovery: investor behavior and consumers remains far too unpredictable.


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