Eurozone investor morale slumps to 18-m low – Sentix

Investor confidence in the eurozone plunged in April to its lowest level since October 2023, as new US tariffs weighed heavily on sentiment, according to Reuters citing a Sentix survey published Monday.

The Sentix index fell sharply to -19.5 from -2.9 in March, missing analysts’ expectations of -10.0. The drop comes as the 27-nation bloc braces for 25 per cent US tariffs on steel, aluminium, and cars, and 20 per cent duties on most other goods starting Wednesday.

Economic expectations for the next six months took a major hit, falling by 33.8 points to -15.8, the second-largest monthly decline since Sentix began tracking the data in 2002, behind only the aftermath of Russia’s 2022 invasion of Ukraine. The current situation index edged down to -23.3 from -21.8.

Germany, the bloc’s largest economy, saw an even steeper decline in investor expectations, tumbling by 36.3 points to -15.8.

“Hopes following the planned debt orgy have been buried,” Sentix said, referring to the German government’s proposed debt-financed investments in defence and infrastructure.

Attribution: Reuters
Subediting: M. S. Salama