2020.04.0610:18:00UTC+00Eurozone Investor Confidence Plummets To Record Low On Covid-19 Shock

Eurozone investor confidence sunk to a record low in April as the coronavirus, or Covid-19, pandemic spread across the globe forcing several countries to enforce lockdowns, survey data from the behavioral research firm Sentix.

The Sentix investor confidence index shed 25.8 points to reach an all-time low of -42.9. Economists had forecast a reading of -30.3.

"Without exception, all regions of the world are in a deep recession," Sentix said. "Never before has the assessment of the current situation collapsed so sharply in all regions of the world within one month."

"A fast, V-shaped recovery is unlikely," the think tank added. The survey was conducted between April 2 and 4 among 1,173 participants, of whom 268 were institutions. The headline index remained in negative territory for the second month in a row. The current situation index of the survey fell to a record low -66 from -14.3 in March. The monthly decline of 51.75 points is an absolute record since the beginning of the data collection in 2003, Sentix said. The situation is much worse than in 2009 and economic forecasts to date underestimate the shrinking process, Sentix said. "The recession will go much deeper and longer! There is an enormous need for revision in the already reduced forecasts of many institutes," the firm added.

The Euro area must prepare itself for a severe economic and social test, Sentix said. In contrast, the expectations measure climbed to -15.8 from -20 in the previous month. The investor confidence index for Germany fell to -36, its lowest level since March 2009. The current situation index dropped to -59, its weakest level since May 2009. The expectations measure climbed to -9 from -20.5. The investor confidence index for the USA plunged to -39.1 from 0.2 in March. The current situation index plummeted to -59 from 17.8. Both readings were lowest since 2009. The expectations measure fell to fell to -16.5, its lowest since October. In the Asia ex-Japan region, the investor confidence hit the lowest since December 2008, at -21.8. The current situation index fell to a record low -41.3. The expectations measure stagnated.