Eurozone Sentix Investor Confidence dropped sharply to -17 in March, down from 5.2, missed expectation of -11. That’s the lowest level since April 2013. Current Situation index dropped from 4.0 to -14.3, lowest since October 2019. Expectations index plunged from 6.5 to -20.0, lowest since August 2012.
Global Overall index dropped form 8.1 to -12.0, lowest since July 2009. Current Situation index dropped from 10.5 to -8.8, lowest since November 2009. Expectations index dropped from 5.8 to -15.3, lowest since October 2011. Regional readings suggested Eurozone, Germany, Eastern Europe, Japan, Asia ex-Japan and Latin America are all in recession. Swiss, Austria, USA and global are in downturn.
Sentix said, the coronavirus is “plunging the global economy into recession”. And the data puts the current slump in an “inglorious chain”, Lehman (2008), Fukushima (2011) and the oil credit crisis (2016). It’s also putting pressure on the economy in Eurozone. The set of data “means nothing other than that investors are preparing for a long period of economic weakness.” In addition to ECB’s “wise steps”, “wisdom may require this time that fiscal policy in particular shows itself to be generous”. It warned, if no action is taken, no one should be surprised by a new ‘Lehman’ moment that would increase the chaos.
