Data released today (July 10) showed that the Sentix investor confidence index in the euro zone fell more than expected in July, hitting the lowest point since the European energy crisis in November last year, because the euro zone is still in recession and there is no sign of the situation will get better.
“There’s also not much positive news in terms of forward expectations,” said Manfred Huebner, managing director of Sentix.
“The question is where the improvement might come from,” Huebner said.
Investors surveyed expect central banks to further restrict monetary policy, while the U.S. economy, which has weathered a global recession, has not spread positive momentum.
In particular, Huebner noted that values in Germany, Europe’s largest economy, were “very bad”: the headline index fell 7.3 points to -28.4, with a similar sharp drop in the current conditions and expectations index.