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Drop in euro zone investor mood slows in October – survey
Global Banking & Finance Review®
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BERLIN (Reuters) – Investor morale in the euro zone fell less than expected at the start of October, with Germany’s economic weakness continuing to drag on the region but expectations rising slightly, a survey showed on Monday.
Sentix’s index for the euro zone declined to -21.9 points in October from -21.5 in September, better than the -22.8 estimated in a Reuters poll of analysts.
“In the euro zone, and especially in Germany, the economic situation remains weak and the recessionary tendencies persist,” said Sentix Managing Director Manfred Huebner.
“At least there is a slight ray of hope in the form of rising expectations. However, it would be premature to declare a turnaround”.
The subindex for future expectations in the euro zone rose to -16.8 points, from -21.0 in the previous month, recording its highest level since April.
“At best, it means a decrease in the negative momentum,” said Huebner. “A negative expected value means that investors’ assessment of the economy in six months is weaker than their assessment of the current situation.”
The current situation index declined to -27.0 points, its lowest level since November 2022, from -22.0.
The poll of 1,222 investors was conducted between Oct. 5-7.
(Reporting by Sarah Marsh; Editing by Miranda Murray)
Investor morale refers to the overall sentiment and confidence of investors regarding the economic outlook, which can influence their investment decisions and market behavior.
A recession is an economic decline characterized by a decrease in GDP for two consecutive quarters, leading to reduced consumer spending and increased unemployment.
A survey index is a statistical measure derived from survey responses, used to gauge sentiment or conditions in a specific area, such as investor confidence.
A subindex is a component of a broader index that measures a specific aspect or category within the overall index, providing more detailed insights.
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