Investor Morale in Euro Zone Rises

BERLIN (Reuters) – Investor morale in the euro zone unexpectedly rose in October after three consecutive months of decline, buoyed by rising expectations despite dissatisfaction with the current situation hitting a new low.

The Sentix index for the euro zone climbed to -13.8 in October from -15.4 in September, surpassing analysts’ forecast of a drop to -15.9.

A survey of 1,150 investors conducted from Oct. 3-5 revealed rising expectations, improving to -3.8 points from -8.0 the previous month. Contributing factors for the increase include the European Central Bank’s rate cuts and recent stimulus from China.

Conversely, the current situation score for the eurozone fell for a fourth consecutive month to its lowest point this year, at -23.3 in October compared to -22.5 in September.

Sentix commented, “The downward economic trend has been halted for the time being. The euro zone economy is thus starting its next attempt to find its way out of recession/stagnation.”

In Germany, the largest economy in Europe, investor morale also improved for the first time since June, rising to -31.5 from -34.7 in September, with expectations increasing despite the current situation index remaining near this year’s lows.