There has been a pick-up in investor sentiment over the last number of months and this partly reflects economic indicators, which have been somewhat more positive both in Europe and globally.
Nevertheless, this follows a very sharp contraction in euro area GDP in the first three months of the year and the more recent data, for the most part, point to a further – but smaller – decline in activity in the second quarter. The recovery is likely to be gradual and extended, however, given the nature and scale of the crisis we have experienced.