Eurozone Market Sentiment Tracker
Bullish sentiment in the Eurozone is supported by the European Central Bank’s aggressive monetary easing. Five consecutive rate cuts have lowered the deposit rate to 2.75%, a move that is expected to stimulate borrowing, consumption, and investment. In addition, the manufacturing sector is showing early signs of stabilization: the Purchasing Managers’ Index improved from 45.1 in December to 46.6 in January, indicating that contraction is slowing and that growth might soon emerge. Complementing these factors is a resilient labor market—with historically low unemployment and a gradual recovery in private consumption—which helps underpin a modest economic rebound across the bloc.