Figures from the Sentix showed that the eurozone investor sentiment rose again in June, recording its eighth consecutive monthly increase and reaching its highest level since February 2022.
The investor confidence index rose to +0.3 points from -3.6 points in May, while consensus estimates suggested an increase to -1.5 points. The poll of 1,174 investors was conducted between June 6-8.
The economic expectations index rose by 2.2 points to 10.0 points. It was the ninth monthly increase in a row and the highest value since February 2022. Meanwhile, the current situation index increased to -9.0 points (the highest value since May 2023) from -14.3 points in May.
Sentix said that the recovery continues, but the upswing lacks momentum. "After a series of eight consecutive improvements, the overall index for the eurozone just reached the zero line in June. Nevertheless, this is the highest level since February 2022. The assessment of the current situation is also continuing to improve. However, an index level of -9 points emphasizes the statement that the recovery is only proceeding with difficulty and is taking a long time to make progress in triple steps. The slow improvement in the current situation is certainly one of the main arguments in favor of the ECB being able to cut interest rates further. However, the window of opportunity for this does not appear to be too large," Sentix added.
Meanwhile, the investor confidence index in Germany rose to - 12.5 points (the highest value since April 2023) from -17.5 points in May. The economic expectations index improved to +2.3 points (the highest value since February 2022) from 0.0 points in May, while the current situation index rose to -26.3 points from -33.5 points in May.