Eurozone Sentix Investor Confidence rose solidly to 14.7 in August, up from 12.1 and beat expectation of 12.8. Current situation index rose from 36.8 to 33. Expectations index also improved from -10.0 to -5.8. Sentix noted that the indices “reflect less the danger of a general turnaround”. Instead, they point to a “cooling of phase”. Also, the data “reflect a certain all-clear in the trade dispute with the US after EU Commission President Juncker succeeded in preventing a further intensification of the conflict in negotiations with US President Trump.”
Germany is a beneficiary of the diminishing fear of a trade war. Its overall Sentix index rose from 16.2 to 20.4, with current situation index up from 51.3 to 54.8, expectations index up from -14.0 to -9.3. US overall index climbed from 18.6 to 25.6, highest since March. The US current situation index rose from 53.8 to 62.8 and hit an all time high. Expectations index also improved from -11.8 to -6.3.
Japan overall index improved from 10.9 to 13.2 but was capped below June’s 14.3. Also, current situation index dropped from 30.5 to 30.3, hitting the lowest since September 2017. That’s also the sixth decline in a row. Japan expectations index rose from -7.0 to -2.5.
