There was a similar lag between improved sentiment and tangible economic results in the United States, they said.
Reflecting the improved sentiment, William F. Tanona, an analyst for Goldman Sachs, upgraded Morgan Stanley, giving a new price target of $50. "Morgan Stanley is one of the better-positioned firms, in our view, as it has an enviable businesses mix with a strong international presence," he wrote in a note published Tuesday.
The improved sentiment could give Republican voters a reason to turn out in November — to reward the lawmakers they see as having given them a financial lift.
And while there are faint signs of improved sentiment, few see any real prospect of improvement in Europe in 2012.
The improved sentiment about real estate in Orange County is indicative of improving attitudes about housing throughout the region, as prices have inched up and sales have increased in the last year.
"There are signs of improved sentiment.
The improved sentiment has been followed by several deals in Spain in the past month.
Still, despite the improved sentiment at smaller manufacturers and service providers, companies in those categories remained overwhelmingly pessimistic.
The tankan also showed improved sentiment in the service sector, with the index for big non-manufacturing companies rising 6 points to 12.
Martin Sorrell, chief executive of the WPP Group, said last week, as the company reported a big drop in earnings for the first half, that he saw few signs that improved sentiment about the economy was translating into higher spending by advertisers.
