STOCK MARKET WATCH -- Friday, 30 August 2013

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15. Euro zone morale climbs in shadow of record unemployment

http://www.reuters.com/article/2013/08/30/us-eurozone-economy-idUSBRE97T0A320130830

(Reuters) - Optimism in the euro zone's economy improved sharply in August but stubbornly high unemployment, in particular in the bloc's weaker countries, highlighted the fissure separating the recovering north from the struggling south.

The confidence of business managers polled by the European Commission rose for its fourth successive month in the euro zone, the EU executive said on Friday. The positive trend was particularly strong in Germany and the Netherlands but was also seen in Italy, France and Spain.

The measure of sentiment across the bloc in August, based on business orders, industrial confidence and other factors such as companies' hiring plans, increased by 2.7 points to 95.2.

Such rising confidence has inspired some to predict that the 17 countries using the euro have overcome a crisis that was triggered by banks' investment in risky mortgage debt and later drove some states to the brink of bankruptcy.