Euro zone investor morale turns positive for first time since February
Euro zone investor morale turned positive in August, rising for a fourth month as current conditions improved and the Iran war shock partially faded.
Investor sentiment in the euro zone has swung back into positive territory for the first time in six months, according to the latest Sentix survey released on Monday. The headline index rose to 0.9 points in August, up from -3.1 in July, marking a fourth consecutive monthly gain and the highest reading since February.
The improvement was driven primarily by a sharp recovery in how investors assess current economic conditions. That subindex climbed to -8.0 points from -14.8 in July, while the expectations gauge edged up to 10.3 points from 9.3.
Sentix noted that the confidence shock triggered by the Iran war appears to have been partially absorbed, although high energy costs and subdued order books continue to weigh on the outlook.
In Germany, the bloc's largest economy, the headline index rose to -11.9 points from -19.4 — a third consecutive increase and the strongest level since February. Sentix pointed to firmer economic data and second-quarter growth of 0.2% as evidence that "further economic stabilisation is on the horizon" for the country, with the economy having avoided another recession.
The survey, conducted between August 6 and August 8, polled 1,097 investors, including 213 institutional investors.