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Sentix lifts euro-area investor confidence back into positive territory

The August Sentix gauge rose to 0.9 from -3.1 previously, helped by improving current conditions and expectations and partial absorption of a confidence shock tied to US-Iran tensions.

Reported · Written up by our desk · Central Banks

Euro-area investor confidence rebounded in August, with the Sentix index returning to positive territory for the first time since February, according to Forexlive. The August reading rose to 0.9, up from -3.1 prior and versus a -0.5 expected level. Forexlive reported that both components improved, with the current situation index climbing sharply to -8.0 from -14.8, and the expectations index improving to 10.3 from 9.3, with both components also reaching their highest levels since February this year.

The renewed sentiment improvement was also supported by further stabilization in Germany, Forexlive said. Even so, the current conditions index in Europe's largest economy remained negative at -28.3, though it improved from an estimated -39.8 in July, while German expectations rose to 6.0 from 3.5.

Sentix also pointed to headwinds, noting that a severe confidence shock tied to US-Iran appears to have been at least partially absorbed. It warned that high energy costs and a still subdued order book remain significant obstacles, Forexlive added.

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