Investor Morale Declines in Euro Zone

By Maria Martinez

BERLIN (Reuters) – Investor morale in the euro zone fell for a second consecutive month in August, reaching its lowest level since January.

The Sentix index for the euro zone decreased to -13.9 points in August from -7.3 in July. Analysts surveyed by Reuters had anticipated a drop to -8.0 this month.

The expectations index also experienced a significant decline, falling to -8.8 points from 1.5 in July. Sentix remarked this drop is “likely to worry forecasters,” as the already weak economic landscape is poised for further deterioration over the next six months.

The survey indicated investor concerns regarding the fragile geopolitical situation, particularly in the Middle East, ahead of upcoming German state elections, and uncertainties surrounding the U.S. presidential election later this year.

Investor confidence plummeted in Germany, Europe’s largest economy, declining to -31.1 in August from -19.0 the previous month. The current situation index for Germany also dropped sharply to -42.8 in August from -32.3 in July.

The poll included 1,150 investors and was conducted between August 1-3, according to Sentix.