Euro zone investor mood darkens in Sept -survey
Reuters
Published Sep 04, 2023 09:32
FRANKFURT (Reuters) - Investor morale in the euro zone fell more than expected at the start of September as Germany's economic weakness remained a major drag on the region, a survey showed on Monday.
Sentix's index for the euro zone declined to -21.5 points in September from -18.9 in August, weaker than the -20.0 estimate in a Reuters poll of analysts.
"The situation in Germany remains particularly precarious. Here we are measuring the weakest situation ... since July 2020, when the economy was slowed by the first coronavirus lockdown," Sentix Managing Director Manfred Huebner said.
"Germany is also weighing heavily on the economy in the euro zone as a whole ... The tipping point of a global recession is less distant than one might think."
The sub-index for future expectations in the euro zone also fell to -21.0 points, from -17.3 in the previous month. The current situation index declined to -22.0 points, its lowest level since November 2022.
Singling out Germany, Huebner said the "complete lack of economic competence in the political leadership and the enormous uncertainties for the economy caused by the energy and electricity crisis are dragging the German economy deeper and deeper into recession".
He said that the current situation sub-index for Germany was at the lowest level since the coronavirus crisis in July 2020, adding the only time it had been lower was during the 2008/2009 financial crisis.
The poll of 1,220 investors was conducted between Aug. 31-Sept. 2.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.