Eurozone Investor Confidence Highest In 7 Months
(RTTNews) - Euro area investor sentiment strengthened to a seven-month high in February as economic expectations increased dynamically despite tariff threats, results of the monthly survey by the behavioral research institute Sentix showed on Monday.
The Sentix investor confidence index climbed to -12.7 in February from -17.7 in January. The reading was the highest since July 2024. The score was forecast to improve moderately to -16.4.
Although the current assessment improved in February, it remained in the deep red. The corresponding index rose to -25.5 from -29.5 in January.
On the other hand, the expectations index advanced to +1.0 from -5.0, exceeding the magic zero line for the first time since July 2024.
With the improved economic outlook, hopes of more significant support measures from the European Central Bank are also dwindling, Sentix said. The room for maneuver threatens to narrow as the inflation trend remains a negative factor.
Last month, the ECB had lowered its interest rates for a fourth policy session in a row. The quarter point reduction took the deposit rate to the lowest since February 2023.
German investor morale also brightened on hopes of a political turnaround after the federal elections on February 23. Nonetheless, the think tank said Germany's recessionary economy is hanging like a lead weight on the Eurozone.
Germany's investor sentiment index improved to -29.7 from -33.3 to mark the highest level since July 2024.
The current situation indicator held steady at -50.8 in February. Meanwhile, the expectations index surged to -5.8 from -13.8 in January.