Economic confidence in the euro zone in December was at its highest level since July 1998 as stock markets in most countries posted record highs, according to data released yesterday by the European Commission.

The headline sentiment index of the Commission's monthly business and consumer survey for December rose to 105.2 from a revised 105.1 in November.

It is now just below a record level of 105.7 set in June 1990 and at its highest reading since a 105.6 peak reached in July 1998 before the onset of Russia's financial crisis.