Eurozone investor sentiment up for eighth month

Investor morale in the eurozone rose for the eighth consecutive month in June, according to a survey by Sentix on Monday cited by Reuters.

The Sentix index for the eurozone increased to 0.3 points in June, up from -3.6 in May, surpassing analysts’ expectations of -1.8. The index on expectations also climbed from 7.8 to 10.0, suggesting a potential continuation of this positive trend.

However, Sentix noted that Germany, the bloc’s largest economy, needs to generate more momentum. The index had plunged into negative territory after Russia’s invasion of Ukraine in February 2022.

Despite some improvements, particularly in Germany, where the current situation index rose from -33.5 in May to -26.3 in June, the economic recovery remains challenging.

The sluggish improvement is likely a factor in the European Central Bank considering further interest rate cuts. The Sentix poll, conducted from June 6–8, included responses from 1,276 investors.