(MENAFN– ecpulse) Eurozone business indicators tumbled and economic confidence unexpectedly fell in April, although the European Commission’s gauge released Tuesday was marginally changed from a month ago.
The unfolding signs of stability in the euro area is unlikely to force the European Central Bank sue controversial measures from negative interest rates to quantitative easing (QE) to avert the risk of deflation or if the recovery falters.
The ongoing geopolitical tension in east Ukraine has surely weighed on consumers and businessess in the euro area since russian annexed the country`s Crimea peninsula.
Highlights:
- Economic Confidence fell to 102.0 vs. 102.5 revised from 102.4, analysts expected 102.9
- Industrial Confidence fell to -3.6 vs. -3.3
- Consumer Confidence rose to -8.6 vs. -8.7
- Services Confidence fell to 3.5 vs. 4.5 revised from 4.2
- Business Climate Indicator fell to 0.27 vs. 0.40 revised from 0.39
The decline in Euro-area confidence inducators reflects the detroiorating general sentiemnt across the world amid the worsening crisis in eastern Ukraine, as the US and EU yesterday imposed more political and economic sanctions agaisnt Russia, one of Europe`s biggest markets and top oil exporters.
This sanctions come at a time where increasing separatism the east of the country, which claimed the lives of some people over the past few days and prompted the Russian government to deploy its forces across the border lines with Ukraine.
The euro fell against the dollar following the news, with the EURUSDfalling toa session low of 1.13848 and now trading slightly up around 1.3867 as of 12:29 GMT+3.
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