The European Commission released its economic sentiment index for the Eurozone on Thursday. The index rose to 103.9 in April from 103.0 in March. Analysts had expected the index to increase to 103.4.

The drop was driven by improvements in confidence among consumers and in all business sectors except retail trade.

The industrial confidence index increased to -3.7 in April from -4.2 in March, beating expectations for a rise to -4.0.

The final consumer confidence index was up to -9.3 in April from -9.7 in March, in line with expectations.

The business climate index increased to 0.13 in April from 0.12 in March. March's figure was revised up from 0.12. Analysts had expected the index to climb to 0.14.

The rise in business climate index was driven by a more favourable managers' assessment of production expectations, and of the stocks of finished products and export order books.