Business

Euro zone investor morale brightens substantially in March

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

GLOBAL BUSINESS AND FINANCE MAGAZINE

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