Eurozone Sentix Investor Confidence rose to 5.3 in May, up from -0.3 and beat expectation of 1.1. Current Situation index rose from 3.8 to 11.0. Expectations index rose from -4.3 to -0.3, highest since March 2018. Sentix noted that the danger o recession in Eurozone is “averted”. Global environment made a “significant contribution” to the positive development. Danger of unregulated Brexit has been averted until at least October. It also said the forthcoming elections in Europe will “take place in a relaxing economic environment”.
For Germany, Overall index rose to 7.9, up from 2.1, and hit the highest since November 2018. Current situation index rose from 10.5 to 18.3. Expectations index rose from -6.0 to -2.0, highest since February 2018. Sentix noted that the spark from the Chinese economy, which has recovered significantly since the start of the year, is “increasingly jumping over to the export-dependent German economy”.
