Eurozone investor mood stops nosedive in August
2023.08.07 05:01
© Reuters. FILE PHOTO: Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
BERLIN (Reuters) – Investor morale in the euro zone unexpectedly rose in August, ending three consecutive months of decline as inflation has lost some of its explosive power, but there are no signs of a lasting turnaround in sentiment, a survey showed on Monday.
Sentix’s index for the euro zone rose to -18.9 points in August from -22.5 in July, beating expectations of analysts polled by Reuters of a further drop, to a reading of -24.3.
Germany in particular has become “the sick man” of the euro zone and is weighing heavily on the region, said Sentix managing director Patrick Hussy, with investor morale in Europe’s largest economy falling to its lowest level since October 2022.
The subindex for future expectations in the euro zone rose 7.3 points to -17.3, which Hussy attributed to easing in the expected rate of deterioration rather than positive sentiment.
The “more lenient view” of the next six months is because investors see the issue of inflation as losing some of its explosive power, said Hussy, though there are not yet signs that the situation will continue to head in the right direction.
“The economy in the euro zone remains in recession mode. There can therefore be no joy about this development,” he said.
The poll of 1,202 investors was conducted between Aug. 3-5, according to Sentix.
