Figures from the Sentix showed that the eurozone investor sentiment rose this month, recording a second increase in a row, helped by improved assessments of the current situation. The poll of 1,066 investors was conducted between October 31 - November 2.
The investor confidence index rose to -12.8 points from -13.8 points in October, while consensus estimates suggested growth to -12.7 points. The economic expectations index remained at -3.8 points. Meanwhile, the current situation index rose to -21.5 points from -23.3 points in October.
Sentix said that alongside the economic problems, a new, old specter is looming on the horizon for investors and that specter is called inflation. "We are measuring a significant slump in the ‘Inflation’ theme barometer from +11 to -12.25 points. This is the weakest reading since July 2023. For the ECB and thus also for investors' interest rate hopes, this is a bad team. After all, the weak economy actually requires the support of an expansionary monetary policy. 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", - Sentix added.
Meanwhile, the investor confidence index in Germany rose to -29.8 points from -31.5 points in October. The economic expectations index improved to -12.8 points from -13.5 points in October, while the current situation index rose to -45.3 points from -47.8 points.