Eurozone Sentix Investor Sentiment turned positive to 1.3 in January, up from -2.7, but missed expectation of 2.0. That’s nonetheless the highest since February 2020. Current situation index rose to -26.5, up from -30.3, highest since March 2020. Expectation index rose to 33.5, up from 29.3, an all-time high. Sentix said, “the main reason for the expectations, despite the renewed lockdown ex-tension in Germany, is probably the high hope for a successful vaccination campaign.”
“Nevertheless, we do not see the development so positively,” it added. “This is because the assessment of the situation has been showing a much flatter trend than the stormy expectations for months now. There is a potential for a temporary sobering up here, because investors seem to underestimate the danger that the economies are more damaged than the data seem to reflect and that this will only become visible when the restrictions are actually lifted.”
