Eurozone Sentix Investor Confidence improved to -4.5 in November, up from -16.8 and beat expectation of -13.0. Current Situation Index rose to -5.5, up from -15.5. Expectations Index rose to -3.5, up from -18.0, highest since May, 2019.
Sentix said that the indices “give hope that a deeper recession can be averted in the eurozone”. The turnaround in ECB’s monetary policy has been “well received” by investors. It’s also measuring a stronger rise in money supply aggregates again, which usually has a “stimulating effect” on the economy. Growth is also expected to be supported by “higher government spending”.
For Germany, the Overall Index rose to -6.5, up from -19.4. Current Situation Index rose from -18.0 to -8.3.l Expectations Index rose from -20.8 to -4.8, also highest since May. “Since the trend reversal that is now becoming apparent is also being led by the Asia ex Japan region, the hope that the slide into recession can be averted is also nourishing hope for the German economy”.
