Eurozone Sentix Investor Sentiment rose to 28.1 in June, up from 21.0, above expectation of 26.0. That’s the fourth increase in a row , and the highest reading since February 2018. Current situation index rose from 6.3 to 21.3, fourth increase in a row, and highest since November 2018. Expectations index dropped slightly from record high of 36.8 to 35.3.
Sentix said: “The eurozone is increasingly leaving the painful losses of the Corona year behind… The positive economic situation is not likely to end any time soon…. However, there is a downside to the strong economy and that is foreseeable rising prices”.
It added, “Experience shows that institutions such as central banks are often “behind the curve” at key turning points. This means that the pressure on prices, and thus also on the bond markets, is likely to continue over the summer. The ECB will probably not be able to avoid the discussion about turning away from its very expansionary policy for much longer.”
