Investor morale in the euro zone brightened substantially in March, with economic expectations hitting their highest reading since July 2021, a survey showed on Monday, as Germany’s plans for new debt contributed to the positive sentiment.
The overall Sentix index for the currency union shot up to -2.9 in March from -12.7 in February, beating expectations from analysts polled by Reuters for a rise to -8.4.
The indicator focused on economic expectations for the next six months rose for a third time in a row to 18.0 in March from 1.0 the month before, according to the survey.
The survey of 1,097 investors from March 6-8 also showed the assessment of the current situation improved to -21.8 in March from -25.5 in February.
The survey cited new debt-financed investments planned for armament in Europe and in Germany, where a newly forming government wants to bump up defence and infrastructure, as behind the bump.
“For Germany, investors are downright euphoric,” Sentix said in a statement about Europe’s largest economy.
Expectations for Germany alone jumped by 26.3 points, to 20.5, and the overall index rose by 17.2 points to -12.5, it added.
The picture was different in other parts of the world, Sentix noted. In the United States, there was a massive slump in current situation and expectations values.
Source : Reuters
This essay analyses the causes of, and remedies for, external imbalances, and what countries should…
Rising rates are testing Japan’s fiscal framework, with debt dynamics hinging on growth and pointing…
With a return to the pre-Iran conflict energy status quo unlikely, a Hormuz toll may…
US firms’ rise in EU asset management may weaken sustainable finance, making tougher stewardship, ESMA…
When global uncertainty increases, emerging markets are typically the most exposed. Historically, tighter US monetary…
Global imbalances are back, and the lesson from history is that they often end in…