Eurozone Investor Sentiment Improves For Second Month - Sentix

RTTNews | 102天前
Eurozone Investor Sentiment Improves For Second Month - Sentix

(RTTNews) - Investor confidence in the euro area strengthened for a second straight month in November amid a modest improvement in the economic data from Germany and optimism about the outcome of the presidential election in the U.S., while markets continue to look for some solid stimulus news from China, results of the closely watched Sentix survey showed on Monday.

The Sentix investor confidence index for Eurozone rose to -12.8 from -13.8 in October, the behavioral research think tank said. Economists had forecast a score of -12.7.

The current situation index of the survey climbed to -21.5 from -23.3 in the previous month. The expectations index was steady at -3.8 in November.

The survey was conducted from October 31 to November among 1,066 investors.

Elsewhere on Monday, results of the S&P Global purchasing managers' survey showed that the euro area manufacturing downturn continued in October albeit at the slowest pace in five months.

The investor confidence index for Germany gained 1.7 points where recent economic data have shown some improvement.

"Even if the crisis cannot shock investors in Germany because they are already in a minor key, no positive turn around scenario can be derived from this data," Sentix said.

"However, investors' reaction also shows how much a political rethink could contribute to a change in sentiment in the economy."

The Sentix survey also showed that investors remained optimistic regarding the outcome of the U.S. presidential elections with the overall confidence index rising for the third month in a row.

The survey also revealed a significant slump in the 'Inflation' theme barometer from +11 to -12.25 points, which was the weakest reading since July 2023.

"After all, the weak economy actually requires the support of an expansionary monetary policy," Sentix said.

"The coming months could thus reveal a conflict of objectives for the central bank, which could be particularly difficult for the financial markets to digest."

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