Euro zone investor morale drops for third month – Sentix
Investor morale in the euro zone slid for the third consecutive month in October to its lowest level since May 2020 signalling a deep recession for the 19-country currency bloc, a survey showed Monday.
Sentix’s index for the euro zone tumbled to -38.3 points in October from -31.8 in September, below expectations of analysts polled by Reuters for a reading of -34.7.
The expectations index also took a tumble to -41.0 from -37.0, hitting its lowest value since December 2008, the peak of the financial crisis after the collapse of Lehman Brothers.
The index on the current situation in the euro zone also fell, declining to -35.5 in October from -26.5 in September and hitting its lowest since August 2020.
“The ongoing uncertainties about the gas and energy situation in winter have not diminished due to the attack on the Nordstream pipelines,” Sentix Managing Director Manfred Huebner said in a statement.
“In addition to the economic worries, there is now also an increasing probability of an escalation of the military conflict in Ukraine. Globally, there is little reason for hope.”
He pointed out that central bankers and governments could not provide the same response now as they did for the economic collapse caused by the coronavirus pandemic in 2020 given soaring inflation.
The poll of 1,331 investors was conducted between Oct. 6 and Oct. 8, said Sentix.
Source: Reuters (Reporting by Sarah Marsh, Editing by Miranda Murray)