Eurozone investor sentiment is at its lowest level since October 2014

Tuesday, August 06, 2019
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14861]

London: Middle East

The sentiment in the eurozone has deteriorated in August, its lowest level since October 2014, revealed on Monday a Sentix group study, which had warned that Germany would certainly be in recession.
The Sentix research group said its euro area investor confidence index fell from -5.8 in July to -13.7 in August, before falling sharply from badysts' forecasts, which were positive. set at 7.7.
Expectations dropped from -13.0 to -20.0. This is the lowest level since August 2012, when the eurozone debt crisis reached its peak.
Mario Draghi, president of the European Central Bank, is committed to "doing all that is necessary" to protect the euro. This commitment has been widely recognized for the cohesion of the European bloc.
A sub-index for Germany went from -4.8 to -13.7. This was the lowest since August 2009. According to Sentix, export dependency and concerns about China had weighed heavily on Europe's largest economy and the quarrel over the past decade. Customs tariffs lasted longer than many had hoped.
Centex said 930 investors had participated in the survey, which took place from August 1 to 3.
Business growth in the euro area virtually ceased in July due to slowing demand. According to one survey, the service sector, dominated by the region, was affected by a sharp decline in the manufacturing sector.
Last month, the ECB will almost certainly ease monetary policy as euro area growth prospects deteriorate and Monday 's survey will not change market expectations for easing.
The final reading of the IHS Market Markets composite index of the euro area, a good benchmark for the strength of the economy, rose from 52.2 in June to 51.5 in July.
This sounds like a preliminary reading, but last month, the index came close to the 50 level between growth and contraction.
Last week's data indicated that factory activity had retreated in July at the fastest pace in six years and that the PMI services index had fallen to 53.2 from 53.6 the previous month , falling below the preliminary level of 53.3.
Future indicators predict that there will be no change in the short term and that demand for services is weak, penalized by the decline of new export activities, which include trade between euro area Member States. The subindex went from 49.4 to 49.2.
This affected general optimism and a composite index for future production rose from 59.2 to 58.8, the lowest reading since October 2014.

Europe

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