Market News

BERLIN (Reuters) - Investor morale in the euro zone brightened in February to its highest since July, a survey showed on Monday, with Germany also benefiting from the rise in confidence.

The Sentix index for the euro zone rose to -12.7 in February from -17.7 in January, above the -16.3 forecast by analysts polled by Reuters.

The survey of 1,111 investors from February 6-8 showed the assessment of the current situation also improved to -25.5 in February from -29.5 in January.

Economic expectations for the next six months rose more dynamically, to 1.0 in February from -5.0 in January, exceeding the magic zero line for the first time since July.

"Germany's recessionary economy is hanging like a lead weight on the euro zone," the survey said. "It is precisely from here that there is now hope for improvement."

The survey found that in Germany - Europe's largest economy and one facing federal elections this month - expectations improved, reflecting hope that a newly elected government could change the economic course.

(Reporting by Maria Martinez, Editing by Miranda Murray)

By Maria Martinez