Figures from the Sentix showed that the eurozone investor sentiment worsened in August, recording the second monthly decline in a row, and reaching its lowest level since January.
The investor confidence index fell to -13.9 points from -7.3 points in July, while consensus estimates suggested growth to -5.5 points. The poll of 1,150 investors was conducted between August 1-3.
The economic expectations index fell by 10.3 points to -8.8 points. It was the second decline in a row and the lowest value since December 2023. Meanwhile, the current situation index declined to -19.0 points (the lowest value since February) from -15.8 points in July.
Sentix said that investors are particularly concerned about the fragile geopolitical situation, especially in the Middle East. However, the upcoming elections, especially in Germany (state elections) and the USA (US presidential elections), are also coming into focus. "The uncertainty surrounding the outcome of the elections is creating a kind of vacuum, especially as the slowdown in the US economy is also accelerating and spreading to the rest of the world", - Sentix added.
Meanwhile, the investor confidence index in Germany fell to -31.1 points (the lowest value since October 2023) from -19.0 points in July. The economic expectations index fell to -18.5 points (the lowest value since October 2023) from -4.8 points in July, while the current situation index fell to -42.8 points (the lowest value since June 2020) from -32.3 points in July.