Eurozone investor sentiment improves
In the middle of summer, the eurozone business sentiment showed a significant rise. Concerns about the coronavirus pandemic have started to fade away and positive tendencies have lifted up the mood of market participants.
According to the survey conducted by analytical company Sentix, in July, investors’ sentiment in the eurozone has greatly improved. The indicator has been moving up for three months in a row. However, economists have warned that the economic revival after the pandemic could be short-term.
Sentix reported that in July, the eurozone investor confidence index advanced to -18.2 points. In June, the indicator reached the level of -24.8 points. At the same time, the current situation indicator jumped to -49.5 points from -61.5 points in June. However, expectations declined to 19.5 points compared to 21.8 points in the previous period.
Analysts at Sentix fear that the current advance may be short-lived. However, they hope that the economy will go on growing. Investors suppose that in 2020, the eurozone economy could recover by 60% from its pre-crisis level.
According to the estimates provided by Sentix, Germany’s economy may show the best performance. Thus, it is expected to recoup around 60% of its losses during this year. Economists explained that Germany would recover at a quicker pace than other EU countries as it is the largest economy in the union. However, despite a massive stimulus package, the country’s economic expectations inched down.