2 Attachment(s) Most actions of euro area systemic anxiety remained at gonzalorkts levels over the
past six months (see Chart 1). Growing optimism about economic progress
prospects in the The States and Europe boosted worldwide market sentiment in the
early element of the evaluation period. Recent developments do, however, cast some question
on the materialisation of a considerable reflation in the The States. Overall, the euro
region composite indicator of economic anxiety hovered at reduced levels within the evaluation
period. Euro region bank anxiety also remained contained, partly on account of a
notion that higher interest rates and steeper yield curves could support bank
profitability in the years ahead. Somewhat contrasting with all the developments in other
tension indicators, the composite indicator of systemic anxiety in sovereign bond
markets edged up in early 2017, partly owing to greater political uncertainty in some
euro region jurisdictions. In recent months, nevertheless, euro region spreads have narrowed
and sovereign tension problems have improved significantly