Figures from the Sentix showed that the eurozone investor sentiment worsened in September, recording the 3rd monthly decline in a row, and reaching its lowest level since January.
The investor confidence index fell to -15.4 points from -13.9 points in August, while consensus estimates suggested growth to -12.4 points. The poll of 1,142 investors was conducted between September 5-7.
The economic expectations index rose by 0.8 points to -8.0 points. It was the first increase in the last three months. Meanwhile, the current situation index declined to -22.5 points (the lowest value since December 2023) from -19.0 points in July.
Sentix said that the political and economic chaos in Germany is a heavy burden on the entire eurozone. "The only hope for investors in this context is the prospect of a loose monetary policy. Investors are expecting further interest rate cuts this month. These are also flanked by a more optimistic view of inflation. At 14.25 points, the ‘Inflation’ theme barometer is almost as high as it was at the beginning of the year. Investors are therefore assuming a further easing on the price front. At the same time, however, investors also expect governments to continue their expansionary behavior and increase their debt levels", - Sentix added.
Meanwhile, the investor confidence index in Germany fell to -34.7 points (the lowest value since October 2023) from -31.1 points in August. The economic expectations index fell to -20.3 points (the lowest value since October 2023) from -18.5 points in August, while the current situation index fell to -48.0 points (the lowest value since June 2020) from -42.8 points in August.