Eurozone investor morale hits lowest point in over a year

Investor confidence in the eurozone fell sharply in December, with the Sentix index dropping to -17.5 from -12.8 in November, marking its lowest level since November 2023, according to a survey released on Monday. The decline exceeded analysts’ expectations of -13.5.

Germany, the bloc’s largest economy, remained a major drag as recession fears persisted despite the announcement of snap elections in February. Investor sentiment for Germany fell to -33.2 from -29.8, while the euro zone’s current situation score dropped to -28.5, the lowest in more than two years.

Expectations for the bloc also declined, slipping to -5.8 in December from -3.8 in November. The survey of 1,148 investors, conducted from December 5 to 7, highlighted the absence of optimism in Germany and ongoing economic challenges across the region.

Attribution: Reuters

Subediting: M. S. Salama