Eurozone investors morale beats expectations in October

The ZEW economic sentiment indicator for the euro area rose 10.8 points to 20.1 in October, reaching its highest point since July and beating market expectations of 16.9.

This positive change follows three months of declining sentiment. Factors contributing to this improvement include expectations of stable inflation, the potential for further interest rate cuts by the ECB and improved economic forecasts for the euro area, the US and China.

In October, around 62% of surveyed analysts expected no change in economic activity, 20% expected an improvement and 8.8% a deterioration.

Meanwhile, the current economic situation indicator fell 0.4 points to minus 40.8 and inflation expectations rose 7.6 points to minus 20.9.